BAGHDAD — An Iraqi court dropped charges Monday against two former government officials accused of allowing Shiite death squads to use ambulances and government hospitals to carry out kidnappings and killings.

The case has been seen by minority Sunnis in this majority-Shiite country as a major test of the judiciary system, because a Shiite prime minister, Nouri al-Maliki, leads the government.

U.S. Embassy spokesman Philip Reeker said America understood the three-judge panel found former Deputy Health Minister Hakim al-Zamili and Brig. Gen. Hameed al-Shimmari, who was in charge of the ministry’s security force, not guilty of kidnapping, murder, and corruption charges. However, the defendants remained in American military custody and the charges could be reinstated if prosecutors successfully appeal the decision.

Iraqi and Iranian officials said that America and Iran planned to meet today for their fourth discussion on Iraqi security, but America said no meeting was planned. Iran’s state news agency, IRNA, quoted the delegation chief, Reza Amiri Moghaddam, as saying that the talks with America would take place the following day.