A presidential panel says U.S. intelligence about Iran's arms capabilities is "inadequate."

The New York Times says the panel investigating U.S. intelligence on global weapons proliferation will submit the classified report to President Bush later this month.

The commission is expected to also be critical of American intelligence on North Korea, but the newspaper says officials describe the lack of information about Tehran's capabilities as particularly worrisome.

The report says America lacks the intelligence on Tehran's arms to allow firm judgments about its weapons programs.

The United States says Iran is trying to covertly develop nuclear weapons.  Tehran insists its nuclear program is for civilian purposes.

The International Atomic Energy Agency has been skeptical of Tehran's claims, but says it has seen no evidence of an Iranian nuclear weapons program.