Iranian president says talks with U.S. possible

TEHRAN, Iran -- Iran's hard-line president told crowds celebrating the Islamic revolution's anniversary Tuesday that the country is ready for talks with the United States, the strongest signal yet that Tehran welcomes President Barack Obama's calls for dialogue.

President Mahmoud Ahmadinejad made the comments in a speech to hundreds of thousands celebrating the 30th anniversary of the revolution, which ousted the U.S-backed shah and installed rule by hard-line Muslim clerics. The event led to a collapse in relations between the two countries and years of enmity.

As usual at such gatherings, there were chants of "Death to America," along with the burning of U.S. and Israeli flags. But the chanting stopped as Ahmadinejad spoke of dialogue with the United States, and the firebrand president refrained from the denunciations of America that often mark his speeches.

Since Obama's election, Iranian leaders have struck a cautious tone over his campaign promises to open a dialogue with Tehran, signaling that the government was undecided on how to respond. On Tuesday, Ahmadinejad made it clear Iran is prepared to talk, citing terrorism, the elimination of nuclear weapons, restructuring the U.N. Security Council and fighting drug trafficking as possible areas for discussion.

"The Iranian nation is ready for talks (with the U.S.), but in a fair atmosphere with mutual respect," Ahmadinejad told the crowds in Tehran's Freedom Square.

His comments came the day after Obama said his administration was looking for opportunities to engage Iran and pledged to rethink Washington's relationship with Tehran.

But Ahmadinejad also declared that Iran is now a "superpower" -- pointing to the recent launch of the first locally made satellite into space -- and made clear it expects to be treated as an equal.

"If you really want to fight terrorism, come and cooperate with the Iranian nation, which is the biggest victim of terrorism so that terrorism is eliminated. ... If you want to confront nuclear weapons ... you need to stand beside Iran so it can introduce a correct path to you," he said.

Ahmadinejad did not elaborate, but in the past he and other Iranian leaders have criticized the U.S. for its nuclear arsenal.

His speech comes as he begins campaigning for a second term. He faces a formidable challenge in the June election from Iran's top reformist politician, former President Mohammad Khatami, who entered the race over the weekend. Khatami has supported improving ties with the West.

Asked about Ahmadinejad's comments, Secretary of State Hillary Clinton said the Iranian government has an opportunity "to unclench their fist and to begin a serious and responsible discussion about a range of matters."

"We still persist in our view that Iran should not obtain nuclear weapons, that it would be a very unfortunate course for them to pursue, and we hope there will be opportunity in the future for us to develop a better understanding of one another and to work out a way of talking that would produce positive results for the people of Iran," she said.

Tehran and Washington severed relations nearly three decades ago after the 1979 Iranian revolution and the takeover of the U.S. Embassy in Tehran by hard-line Iranian students.

But relations deteriorated even further after the Sept. 11 attacks when former President George W. Bush declared Iran belonged to an "axis of evil." Ahmadinejad widened that gap after he was elected in 2005 and defied the U.S. and its allies by pursuing Iran's controversial nuclear program.

The U.S. believes Iran is secretly trying to pursue nuclear weapons, but Iran has denied this accusation, saying its program is solely for peaceful purposes such as electricity.

Years of negotiations between Tehran and Europe over its nuclear program have failed to make any breakthroughs, with Iran repeatedly rejecting U.S. and European economic incentives to suspend parts of its program and brushing off U.N. sanctions.

But Washington and Tehran did cooperate closely in the 2001 ousting of Afghanistan's Taliban -- before Bush's axis of evil speech. The Bush administration also held direct talks with Iran on stabilizing Iraq, and the U.S. military later reported a reduction in Iran's arming of Shiite militias in the country. Tehran has always denied arming the militias.

Iranian political analyst Davoud Hermidas Bavand suggested that talks on stabilizing Iraq and Afghanistan would be "good topics" to start with. "That may open the way for talks on Iran's nuclear program and Iranian concerns about U.S. Mideast policy," he said.

Iran accuses the United States of seeking to dominate the region. Washington in turn accuses Iran of using its militant allies like Hamas and Hezbollah to stir up trouble in the Middle East.

But Bavand warned against expecting "a quick detente." Iran's supreme leader, Ayatollah Ali Khamenei -- who holds ultimate political authority -- must approve any restoration of ties with the United States, he said, "and there is no sign that the ruling establishment is willing to give up animosity toward Washington."

Still, it is unlikely that Ahmadinejad would give such a public welcome to dialogue without Khamenei's approval.

Obama said Monday that his national security team was reviewing its existing Iran policy and "looking at areas where we can have constructive dialogue."

Ahmadinejad repeated demands that Washington must make "fundamental" changes in policy, moving away from what Tehran calls attempts at domination -- like the Bush administration's war in Iraq, push for sanctions against Iran and support for Israel.

"The world is entering an era of dialogue and intellect," Ahmadinejad said. "The world does not want to see the dark age of Bush repeated."