The State Department annually designates governments as "state sponsors" of terrorism, maintaining that these governments "support international terrorism either by engaging in terrorist activity themselves or by providing arms, training, safe haven, diplomatic facilities, financial backing, logistic and/or other support to terrorists."
The latest list (April 1998) notes "a marked decline in state-sponsored terrorism in recent years," but cites the following countries for reasons including those listed:
Cuba: Continues to provide sanctuary to terrorists from several organizations; maintains strong links to other state sponsors of terrorism.
Iran: Remains most active state sponsor of terrorism; provides significant support to terrorist organizations; aids in assassination of dissidents abroad.
Iraq: Provides haven to a number of terrorist and rejectionist groups; continues to rebuild its intelligence network, which had been used to support international terrorist activity.
Libya: Refuses to hand over the two suspects in the 1988 Pan Am Flight 103 attack; continues to provide support to a number of Middle East terrorist groups.
North Korea: Though not linked to international terrorism since 1987 bombing of Korean Airlines Flight 858, it provides sanctuary for hijackers of a Japanese airliner.
Sudan: Still holds three suspects in the 1995 assassination attempt against Egyptian President Mubarak in Addis Ababa; continues to allow its territory to be used for haven, training, and transit by terrorists.
Syria: Continues to provide sanctuary and support for a number of terrorist groups, including Hamas, which seeks to disrupt the Mideast peace process, as well as the PKK (Kurdistan Workers Party).
Source: US Department of State