THE Iranian President, Mahmoud Ahmadinejad, has opened the door to the prospect of talks with the United States, less than 24 hours after Barack Obama said face-to-face discussions could take place within months.
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"The new US Administration has announced they want to produce change and pursue the course of dialogue. It is quite clear that real change must be fundamental and not tactical. It is clear the Iranian nation welcomes real changes," Mr Ahmadinejad told a rally in Tehran's Freedom Square during celebrations yesterday marking the 30th anniversary of the Iranian revolution. "The Iranian nation is ready to hold talks, but talks in a fair atmosphere with mutual respect."
He said terrorism, the elimination of nuclear weapons, restructuring the United Nations security council and the fight against drug trafficking could be the subjects of discussion.
The Iranian leader said the world was "entering an era of dialogue and intellect" because military power had been unsuccessful, and "does not want to see the dark age of Bush repeated". He referred to George Bush as one of the reasons for insecurity in the region and said "Bush and his allies should be tried and punished".
"If you really want to uproot terrorism, let's co-operate to find the initiators of the recent wars in the Middle East and the Persian Gulf region, try them and punish them," he said.
Mr Ahmadinejad's comments echoed those of Mr Obama on Monday at his first press conference since taking office. The US President said there was a possibility of a relationship of "mutual respect and progress".
"My expectation is, in the coming months, we will be looking for openings that can be created where we can start sitting across the table face-to-face with diplomatic overtures that will allow us to move our policy in the new direction,"
Mr Obama said.
The US and Iran severed relations after the 1979 revolution and the West has been engaged in a stand-off with Tehran over its nuclear program, which the US claims is an attempt to develop a nuclear weapons capability. Iran insists the technology is being developed for peaceful purposes.
Mr Obama said before winning the Democratic nomination for president that he would seek talks with Mr Ahmadinejad, and since taking office he has made good on his promise by making overtures to Iran. However, he warned that rapprochement would not happen overnight.
"It's important that, even as we engage in this direct diplomacy, we are very clear about certain deep concerns that we have as a country, that Iran understands that we find the funding of terrorist organisations unacceptable, that we're clear about the fact that a nuclear Iran could set off a nuclear arms race in the region that would be profoundly destabilising," Mr Obama said.
Despite sending a congratulatory message to Mr Obama after he was elected, Mr Ahmadinejad initially appeared to spurn his overtures by demanding an apology for "crimes" committed by the US against Iran.
Tehran raised fears over its missile capabilities last week when it claimed it had broken into the global space race after launching the country's first domestically produced satellite into orbit. Yesterday's comments will raise hopes that the change in US tactics has prompted a similar change of policy in Iran.
Tens of thousands of Iranians chanting anti-American slogans took to the streets of the capital yesterday for the annual demonstration at a time of tense relations with Washington.
Demonstrators carried placards reading "30 years of freedom, 30 years of pride", "Death to America" and "Death to Israel", and many held red, white and green balloons in the colours of the Iranian flag.
The United States and other world powers suspect that Iran's controversial nuclear program is aimed at making atomic weapons, but Tehran says it is civilian and peaceful.
Each year Iran commemorates the uprising and victory of the revolution on February 11, 1979 when the army declared its neutrality.
"I officially announce that Iran today is a real and true superpower," Mr Ahmadinejad said yesterday, touting Iran's "scientific achievements" - most notably the launch this month of its first home-built satellite into space.
The February 2 launch has unnerved Western powers concerned about the weapons potential of the technology.
Replicas of the Omid (Hope) satellite and the Safir-2 rocket that carried it into space were displayed yesterday, with a banner hailing Iran's "advancement in science and technology".
The US Administration is reviewing relations between Washington and Tehran, looking for a new approach despite concerns over its nuclear program, support for Hamas and Hezbollah and bellicose remarks aimed at Israel.
