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The US action followed a similar decision by Israel.
"I have instructed our representatives at the World Conference Against Racism to return home. I have taken this decision with regret because of the importance of the international fight against racism and the contribution that the conference could have made to it," Powell said in a statement on Labour Day on Sunday, normally a holiday at the state department.
"I know that you do not combat racism by conferences that produce declarations containing hateful language, some of which is a throwback to the days of 'Zionism equals racism' or that singles out only one country in the world - Israel - for censure and abuse," Powell said.
Expressing gratitude towards South Africa, Powell said "I deeply respect the goals of South African President Mbeki and Foreign Minister Zuma in hosting this conference. I strongly support the good work of UN Secretary General Annan to try to make it come out right."
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