First Afghanistan, Then Iraq, Pentagon Adviser Perle Says.(ISSUES & INSIGHTS)(NATIONAL ISSUE)

Byline: BRIAN MITCHELL

Germany warned the U.S. Wednesday against expanding the war on terrorism to Iraq and elsewhere.

Foreign Minister Joschka Fischer told Germany's parliament that "all European nations" would view such a move "highly skeptically -- and that's putting it diplomatically."

But top advisers to the Bush administration think bringing down Iraq's Saddam Hussein is a logical next step. Some also want action against other Middle East countries.

Richard Perle, who serves as chairman of the Pentagon's Defense Policy Board, suggests the U.S. fine Egypt for its clerics' ravings, warn Saudi Arabia against exporting extremism and work to overthrow the governments of Iraq and Iran.

Perle is a resident fellow at the American Enterprise Institute. He was assistant secretary of defense for international security policy under President Reagan.

He spoke last week to the Defense Writers Group in Washington, D.C. Here are edited highlights of Perle's remarks on key Mideast countries.