Britain and Iran announced Thursday they have restored diplomatic relations, which were severed over Ayatollah Ruhollah Khomeini's call for Moslems to kill Salman Rushdie, author of "The Satanic Verses."

The restoration - announced at the United Nations by British Foreign Secretary Douglas Hurd and in a statement from Iran's U.N. Mission - said the embassies would reopen in London and Tehran within a month.The Iranian statement gave no reason for the restoration of relations, saying only that it was based on "mutual respect."

Hurd said that in recent statements Iran had made clear its respect for international law and pledged not to interfere in the internal matters of other nations. That was taken as an assurance that Iran would not try to send assassins after Rushdie, who is believed to still be in Britain.

Iran has recently been less hostile to the West and has said it is cooperating with the U.N.'s economic boycott against Iraq, designed to force it to withdraw its forces from Kuwait.