In a live TV interview aired by the East Azarbayjan TV at 1535 gmt 20 November, President Ahmadinezhad answered viewer questions on a wide range of topics. He appreciated the enthusiastic presence of the people of East Azarbayjan and said they "foiled most of the enemies' plans and programmes". Elsewhere in the interview Ahmadinezhad commented on Iran's nuclear case and said: "Iran would never accept any commitment which would not provide its rights and interests. Whenever they [Western powers] issued a resolution we made a step forward. You [Western powers] have stored bombs in your arsenals while we just want to have energy. They have used all the tools they had and now their weapon is free of cartridge. All their tools were fruitless either military threat or economic one and political and psychological warfare. Thus they exhausted their tools. We are on another level today." The 2 hours and 12 minutes long interview ended and at 1747 gmt. The following is the full text of the interview, subheadings inserted editorially:


[The first presenter] In the name of God, the most merciful, the most compassionate. [Remarks in Arabic] Greetings dear viewers, those who always watch programmes of the provincial Sahand TV. Dear people, whoever receives our images and sounds. I wish success and victory to all of you. As you know, [Sahand TV] is hosting a highly respected guest, actually the most respected guest in the second month of autumn and the final days of the month of Aban. We were granted such a chance to serve the highly-respected quest in the studio of Sahand TV. Mr Shirindel, you please.

[The second presenter] In the name of God, the most merciful, the most compassionate. [Remarks in Arabic] I also extend my greetings to our dear viewers, those who watch and listen to the programmes of the News Network TV, the provincial Sahand TV and the provincial radio channel. We are at the disposal of our dear quest, Mr Dr Ahmadinezhad, the most respectable president of the Islamic Republic of Iran. We want to ask you, dear Dr, for your opening remarks and to establish contact with our dear viewers.

[Ahmadinezhad] In the name of God, the most merciful, the most compassionate. O, God, Hasten the reappearance of the Hidden Imam and grant him health and victory and make us his true companions and believers and those who testify to his rightfulness. I wholeheartedly express my greetings to the people of East Azarbayjan and to all dear people who watch us and listen to us. We are at their service now. I am also greeting you and you dear, good colleagues. I thank the Almighty God that has granted such a success us to conduct our third visit to East Azarbayjan Province. I thank the Almighty God that He created us as Iranians and as part of the Iranian nation. I thank God that He made the people of Azarbayjan as part of the Iranian people. and directed these peoples' greatness, courage, honour and intellect to rising the Iranian land. I am also grateful to the Almighty God for being in Tabriz at you disposal today.

[The first presenter] Thank you a lot dear Mr Dr Ahmadinezhad. [Presenter greets Ahmadinezhad and the cabinet]. Mr Dr Ahmadinezhad, I want to start with this question: What makes your and your cabinet's third trip to East Azarbayjan different from your first and second trips?

[Ahmadinezhad] This is a good question. It has been announced that the main part of the third trip was dedicated to cultural issues. Why the cultural aspect? Because culture is vital for human spirit. The humans have body and spirit; food, meal, air, which is between us now, are necessary for the life of human body. The spirit of humans also needs to live and develop. Culture is the food of spirit. Humans have two invisible connecting rings; firstly, the air. All of us are floating in the air. The air connects us together but we cannot see it. The second thing which is invisible but we can feel it is culture. Culture regulates relations between humans. Humans are created for cultural development, for cultural actions, for humanitarian growth, and for the development of humanitarian values. Otherwise, there would be no difference between humans and other creatures. However, there are some people who are wearing a human mask. If we want to compare these few people with the human being, then it would be impossible, because they are less than other creatures on the perfection scale. Culture is a ring between bodies, hearts, and the spirit of humans. It gives identity, motion, and prepares the ground for making values.

Why we say culture, because culture is important. If we develop the economy, if we launch construction and telecommunication projects, if we develop technology rapidly, if we try to achieve scientific heights, if we try to achieve economic heights, then all of these efforts will be aimed at removing obstacles for the perfection of humans. In other words, all of these actions are designed and implemented for a cultural goal, even though they are not cultural in their nature directly. We are implementing these actions so that humans have a suitable cultural and humanitarian coordination.

Well, in the first round of trips, the view of projects was cultural. But, the cultural aspect was not emphasized. Its reason was some postponed issues, some affairs which needed to be resolved. There were obstacles. If a village does not have a road, or has no basic facilities, then there is no place for cultural discussion. If we offer cultural discussion, they will not accept it. In the beginning, some issues should be implemented in various aspects. I will tell later, but there were two big obstacles; we should resolve them, resolve for the Iranian people in order to achieve the beginning of cultural affairs. The image of the Iranian people throughout history has been a cultural image. The remaining opus of the Iranian people in Iran and the world are cultural works, humanitarian works, and values of humanitarian and cultural works.

During the first trip, some issues we resolved, but we did not achieve the desired goal. Now, the government knows what it should do and it is implementing those issues. It is implementing more extensive actions [than expected]. The government has understood how it should decide immediately and act. The organization of the government was formed during this period. God willing, the actions of the government will be moved forward.

The cultural aspect was emphasized during the second round of trips and it was an independent issue. The government gave more concentration on it. By the call of government for cultural activists, artists and thinkers we sought to continue the work in order to show the real image of the Iranian people, their Revolution and their system which has a cultural image.

[The first presenter] Mr Dr, colleagues went to the streets and according to your interview today on provincial TV, asked some questions from people. If you let us to air the report, then we will come back to studio.

[Video shows a correspondent carrying out interviews in the street; people raising their question and expectations]

[Correspondent] The respectful President Mr Dr Mahmud Ahmadinezhad is the guest of our live programme and he listed to your demands.

[A man] First, I ask Mr president to resolve the youth affairs; to pay more attention to workers in the province, to give importance to those who are working in hard and dangerous conditions and resolve the problems of workers a little bit. Their salaries are very low.

[Another man] Mr President, please support the activities of the martyrs' foundation and the foundation of selfless devotees'. I spent 36 months and 13 days on the frontline [in Iran-Iraq war], and was injured twice. I wrote a letter [on my experience] in Tehran. But I brought that mail here and no-one pays attention to it. I want Mr President to pay attention to the documents of selfless devotees and martyrs' [families].

[Third man] I request Mr President to do something for those third-part forces who work in companies and offices, but do not have job security. President, please do something to ensure job security for them.

[Fourth man] I request him, if it is possible to support small factories and business centres in order to develop the objectives of the Revolution and the industry.

[Fifth man] I stress on public culture of society, I request to increase the public culture of society. I am a cultural activist; the main problem of our country is in cultural aspect. If we increase the public culture of society, then I think the majority of problems will be resolved. Our government is a popular government, and when people's knowledge is increased, they will respect the government similar to themselves, which is right. In this case, undoubtedly the problems will be resolved.

[Sixth man speaking in Azeri] I requested Mr President on the targeted subsidies plan. It seems this discussion has raised some problems and anxieties in society. I request that please implement more expertise actions in this aspect.

[A woman] I request Mr President to make decisions for children of the country to have a good future. I requested to make some decisions in the economic sector of the country that people have problems. Please resolve problems of people.

[Seventh man] About the rapid job-creation schemes, I requested to make a decision on collaterals, because the factory should be the collateral of its loan. Unfortunately, we have given collaterals for three times and we are in a problematic condition.

[Eighth man] I say hello and welcome the respected president of Iran. I divide my statements in two parts. First, increase the public welfare and using the capacities of the government in welfare sector. Second, I ask for Yadegar-e Emam stadium, please make any decision on this stadium so that the fans of this well-known Tabrizi football team, Traktorsazi, are not disturbed. Thanks very much.

[Ninth man] I only want him to order municipality to enrol us. I have worked for nine years, but I do not know my future. I only request him to tell municipality to enrol us.

[Tenth man speaking in Azari] I want to speak about the targeted subsidies plan. My question is in this aspect. People are aware of the plan and only please resolve the conflicts in this aspect.

[A dentist] I ask Mr Ahmadinezhad about the problems of dentists. Dentists that finish university do not have the necessary insurance. There are various kinds of insurance for workers and other insurance, but no dentist who works outside [hospitals] has insurance. They pay part of their incomes to medical centres, government, and hospitals, but they receive nothing. Please, at least give them insurance. This is a fundamental problem for dentists. The second problem is the high prices for those who have graduated. If it was possible to give them some facilities, it would be great.

[Eleventh man] My only request is to respect people. Nowhere in the world you can find people like Iranians. In this bad weather conditions they come here to meet the president and the cabinet members.

[The first presenter] Well done, we watched the report. It was the first part of a report that our colleagues prepared about our provincial brave people. Our guest is the respectful president of Iran, Dr Ahmadinezhad. I do not want to ask questions, because you mentioned questions. We are waiting to your answers.

[Ahmadinezhad] I thank all those who asked good questions. The issues of the youth problems and the problems of workers who work in hard and dangerous conditions are according to continuous planning of the government. The big part of the government's activities is regarding the youth. We make investments, create jobs, sports and cultural affairs, education discussions. In the first government, the ninth government, we prepared hardware for education. Now, the graduated people in pre-university colleagues are less than the universities' capacity. This means all youngsters [can go to university], with some ups and downs, because the qualities are not the same and it is not possible to create capacity for their desired specialities; nowhere in the world is similar this [capacities according to students' wants]. All youngsters cannot go to medical, engineering, and jurisprudence faculties. However, they can choose a similar facility and continue their education.

The Mehr housing project has some problems, and God willing after resolving problems in this project, the housing problem of the youth will be resolved. The rapid job-creation schemes were for youth. They created some problems in it. They manipulated the plan. The key role to resolve the problems of youth is rapid job-creation scheme. This means in a country in which youngsters make up the majority and we have many unemployed people; when we want to create jobs for them, the solution is rapid job-creating scheme, because it takes longer than ten years to build a large factory. Small factories are built fast and youth will work rapidly. We have adopted a decision about the province during this visit and this process will be set in motion. As for the harmful professions mentioned by our friend, if they send their complaint to us, we will inform the council dealing with harmful professions about this. This is beyond our control and has its own laws.

They touched on the issue of the fund of martyrs and veterans. We have carried out certain investigations. Our friends have given us letters again, and if something still remains, let them send it definitely, and I will definitely investigate it. Several years before the ninth government, there was one issue - the issue of subcontractors on human resources. That's to say the state and private sectors had to find personnel through some companies so that their staffing problems can be eliminated - so that they do not have staffing problems. We did not know about this issue in the state sector. This did not reduce the number of staff in the state sector, did not reduce their problems either, and conversely, problems increased, because someone is working somewhere, he should have an interest there so that they remain there and protect the interests of that company. Almost in all spheres of the state sector, not everywhere, but almost in all spheres, this issue was resolved. A contractual system was introduced. Two or three spheres remain, and God willing, we will reform them as well. This processed has happened in more than 65 per cent of state companies - in about 70 per cent. The rest have promised to implement this until the end of the year. But we have been unable so far to introduce this system in the private sector. To this end, there is a need for a law. That's to say the labour law should be changed. The state is currently looking into this to see how the law can be reformed so that we do not get initiatives to avoid some problems, which will displease the employee and employers. We hope we will able to reform this and labour security will be ensured.

They also touched on the issue of small enterprises. They touched on issues of morality in society. This has been discussed in out cabinet and is quite right. Two of our friends touched on the issue of targeted subsidies. I would like to talk about this in more detail, if there is a chance for that, of course. They touched on the issue of youth, funds with fast return and mortgage and urged a quick solution. The banks are following this issue as much as possible. After all, the money allocated by banks belongs to the people. The money should be given back. Our resolutions also contain a point that the necessary funds for the execution of a project should be obtained with a pledge. However, they should work rapidly in order to repay their debt in instalments and get another loan. If there is a glitch in the issue mentioned by our dear friend, apart from what I mentioned, then they should inform the governor-general about it. If the governor-general cannot resolve it, he will let me know, and God willing, I will pursue it.

During our previous visit, we issued a good resolution about the Yadigar-e Imam sports complex. Some investments have been made there. A football section was put into operation. We hope that other sectors will also be opened. And we will have a big sports complex that will cater for our sportsmen.

I would like the mayor [of Tabriz] to hear the question of our dear friend. On my way here, many told me that it would be better if the mayor's office recruited staff on a contractual basis. They love their job, the mayor's office will have to invest less money in them and staff will be happier. We have made a decision on this and have made an announcement. I think that the mayor himself will also have an interest in doing this work. Just all Tabriz people are in the vanguard in all spheres, it would be great if the mayor's office was also in the vanguard and the workers return to the mayor's office.

This is of benefit to the city and the mayor's office. In any case, I have been mayor of Tehran and your colleague. Staff work better when they love their job. In any case, this is their own property, they have to work and live here.

The issue of dentists was raised as well. We have a type of insurance. They can use that. What I said is reflected in the law. The issue of credits is very good. Let them appeal to the medical appraisal department and we will be at their service and will help them. Probably, dentists want to have their own clinic and buy equipment. That's probably why they want credits.

[First presenter] Dental equipment is probably very expensive.

[Ahmadinezhad] Dental expenses are very high for the people. I will say this. Our dear brother said that we should value people. There is no other such nation in the world. This is correct. I want God to give us the fortune of valuing the people. Yesterday, the people of Tabriz and the province embarrassed us - in cold and rainy weather. We spent three or four there. And I was told that some people had spent six or seven hours there. People came there with such enthusiasm to have their say, chant their slogans and demonstrate their greatness, will and existence to the world. They denied many analysis by the enemy. This participation by the people was very meaningful, although Tabriz people hold many such gatherings. This is not the first time. We came here several months and saw it. We came here last year and before that. We have seen this for 32 years. We have seen this since 1356. We saw this during the national movement. We saw this during the constitutional movement. It was evident in the past and during the united national government which was set up in Iran for the first time. We saw the people of Tabriz and Azarbayjan. However, at the current historical time, enemies is using propaganda and psychological warfare to show our people week and say that the Iranian people we weak, is no longer following their ideas and has retreated. But the people of Tabriz showed that this is empty talk. Today they are stronger than yesterday, 10 years and 30 years ago. It is necessary to value these people. It is true that there is no other nation like the people of Iran and Azarbayjan anywhere else in the world. However, it is true that insurance and medical expenses are too high. The solution is to give insurance to all people. There should be a type of insurance that would cover most of the expenses and apply to all medical services. Now if you want to have an implant, it is not included in insurance, but if you want to have it pulled out, then it is included in insurance. We have many wishes that have not been solved although they have been raised for years. Efforts have been made, investments have been made and decisions have been adopted, but the desired result was not achieved. The reason originates from our economic structures and we should definitely reform them. As long as we have not reformed them, no matter how much we invest, how much we spend and how many decisions we make, we will get 30 or 60 per cent results whereas we could get 100 per cent results. The remaining 40 per cent is due to the lack of economic discipline mentioned by our friends. It is the workers' problem, a problem of insurance, high medical expenses and production problems. Since we have not reformed our economic structure yet, we get little profit although we spend a lot. That's to say our productivity is low. We spend too much. Where does this extra money come from. It comes from the people. Some part is paid by the state and another part should be paid by the people. This is the complaint. I am at your service.

[Second presenter] Thanks. I would like your permission to return to the issue of culture. You mentioned two issues. There were two wonderful similes - invisible but very effective - air and culture. I would like to add one more example. Culture has taken root even in the product that plays a key role in the economy. Thus, every product, apart from its material aspects which is the focus of attention, has an extensive cultural aspect. A product a cultural package and has a cultural message. Manufactured products have a cultural burden, while raw materials do not carry any message. That's to say countries manufacturing products also export culture, while those which product raw materials do not. They send empty things, others send it back to the people by turning it into a box that contains a message. As you said, greater attention is being paid to the issue of culture. What mechanisms do you have in mind for that? Because apart from its own sphere, culture is also very effective in other public, political and economic spheres. What mechanisms do you have in mind for that?

[Ahmadinezhad] This is a very good question. Please let me explain the issue in more detail. All thinking people should help here. Cultural figured and artists should get involved in the issue. They should help examine the issue, study its anatomy and resolve it. Everyone should help. Otherwise, the state will begin action and God forbid, it may face a problem in a few years' time and fail to reach an optimal point. Allow me to mention one issue and have a different look at the issue you mentioned through a different prism. In order to clarify the concept of culture, we should look at two different concepts together. The concept of technology, equipment and machinery and the concept of culture. What does machinery do? Let's take a mobile telephone. What does a mobile telephone do? It creates a rapid link between you and any point. This is technology. It allows you to maintain a link with any point and deliver your message. What does culture do? It is culture that tells you who you should maintain links with and what to say. This camera is in front of us. This is technology. It delivers our image to the whole world. This technology has given people such an opportunity. It is culture that defines the link between you and this camera, and the link between you and the mobile telephone. Culture defines the link between people and between people and technology. Let's look at another aspect.

We want to boost our economy. On which basis should we establish it? Some people think that the economy is free from culture and that there is no culture in products. The economy has no mentality. This is a great mistake. Can a product have no identity? Every phenomenon has its own identity. This identity originates from the basis of the manufacture of that product. Now let's switch to the role of culture in the economy. What does the capitalistic economy say? The capitalistic economy has two or three principles. Those who consume more are better developed. Is it a cultural or technological definition. It is a definition related to culture. Why has such a definition been given? Because if there is no consumption, factories will not be able to work and the pockets of international capitalists will not be filled with money. The theories of the whole capitalistic economy are based on the expansion of consumption. When it gives a definition to people, it says consumer people. The authority of what people is higher? Those who consume more, i.e. those who have more money. If someone has a lot of money, but does not spend it, no-one will know that they have a lot of money. What people see is their spending. And from a public point of view, this raises his status. The goal is to make maximum profit. Those who produce and invest try to get maximum profit. They use all factors to maximize their profits. Third, morality plays no role in these relations. Well, we want to build our economy. How should we build it? In any case, we are on the threshold of a big leap. In any case, structures are taking shape. Gas and water have been supplied to the whole country. Roads have been built and electrified. Universities train specialists. Investments are being made and banks are issuing loans. We want to build our economy? How should we build it? That economy separates people. It creates a distance even between a husband and wife, because everyone should spend more so that they can make more money. When it comes to the family environment, tastes change and some tastes and pleasures move from the material sphere to the spiritual-human spheres. When the goal is maximum material pleasure, this collides with those points. The material world is limited. Look at the situation of families in the capitalist world. There is almost no foundation left for families. Is this the economy we want to build here?

Now let's switch to our own culture. We have our own culture. And the principles of this culture are that you want to work for yourselves, that is very good, but along with working for yourselves, you also work for society. What is your value? Your value is to produce more and consume less. Who has high public authority? It is the person who is more useful to society. Look these are different from each other. Both systems have planning. This system has one programme and the other has another programme. You cannot succeed in a sector with those plans. The value of our culture is self-sacrifice for others. Our convictions also say that if you sleep full and even one of your 40 neighbours is hungry, you are beyond being human. You have to answer. Take this and compare it with a father and a son who establish their relations on the basis of maximum profit. These are two cultures. If we do not explain it very well, we will not be able to achieve good results in economy and planning. I mentioned only one part. Culture is a very vast sphere. I only wanted to mention the part that is related to our planning work.

Let's look at this from this aspect. In fact, man and the goal of the creation of man dictates to us what sort of economy we should establish and what your economic relations should be like. We have this. We have the best in our culture. We have a rich cultural treasury, and we only have to work well. I do no accept that some people think everything that comes from other side is correct. Why is it correct? Have you solved your own [problems] that you want to solve ours. Have they achieved happiness? Is there calm and security there? It is not that they have not solved anything because if someone tries hard, they will achieve something. However, there is no sustainability. As we can see, they are in a desperate situation now - they are deadlocked economically, politically, militarily and administratively. Let's have a look at our culture. Our university teachers want to teach economics. What economy should they teach? Of course, we should enter this sphere and create economic theories. In general, there will be totally different formulae.

But if we organize a race of consumption and maximum profit, we will have made investments and the rate of unemployment will always remain high. That's to say we hear criticism and eat onion at the same time [as heard], whereas we have all this in our own culture. In the past, our culture had the issue of maximum production and minimum consumption. Now many people hear us. How did our grandmothers and grandfathers live? Extravagance and wastefulness existing in our society could feed all hungry people in our country. I want to tell you that making subsidies targeted is a return to our own culture and justice. If we implement this, there will be no poverty in our culture. If I have an opportunity, we will talk about this. For the time being, we are talking about culture. We should have a culture look at the economy. Does our country not have enough resources? Why do we have poverty? In that case, relations between the employer and employees will be given a different definition. In that case, a businessman will say that I am not firing these 20 workers, God will give me my wealth, no problem, I can make less money. In that case, our businessmen themselves will deal with the housing and other problems of workers. This is a human duty. Man regards it as perfection for himself. We call it a good deed. A good deed will be rewarded by God. Part of God's reward can be seen in this world. Man rises from a spiritual point of view. This is the prelude to elevation in the afterlife. All relations must change. I do not want to say that we should create chaos in the country. Our views should gradually be based on our cultural foundations. Where do we want to go? We do not want to turn into one of those countries at all. That's why we have prepared promising plans. Our prospects are not like their prospects at all. There is a human horizon in front of us. We do not want to create a society where neighbours do not know each other. You have probably heard in the news that in developed capitalist countries, public relations are extremely limited and segmented. Even within families, relations are weak. We do not want to get there, we want broad and strong relations. That's to we should take care of each other and we should feel like parts of one body. [Quotes a poem from Persian poet Sa'di] We are all one family and one community. God willing, one day all mankind will become one community, that's to say they will have such a feeling. For this reason, in preparing theories and in cultural issues [changing tack] - this was on the economy and macro-politics.

In other spheres, we have such values that should not be ignored and should be developed. [One of these values is] our love for each other, our respect for elders, respect for our mother and father. Some ignorant people regard it as an insignificant issue. We have such customs, and one of them is mutual visits between relatives. They regard this as insignificant issues. They suppose that they have nothing to do with public and economic relations. This is a clear mistake. Relations between people form the economic situation. If we you can give a correct definition to these relations, you can succeed in the economy. Relations between mothers and sons. We disrupt these relations and should expect where this son will be raised. If a child does not learn to love from his mother, he cannot love his community and no-one will be able to love you. This love moves from the body of the mother to the body of the child. If it is weak, it will have an effect on public relations. We want to sever these relations and at the same time, we want to achieve the same living relationship in the social sphere. There is nothing we can take there. This is like a battery that has not been recharged, and we want to obtain energy from it by attaching a cable to it. It should be recharged first. That's to say love should penetrate the human body first and move into the social sphere. We want to separate a child from his mother from childhood and give it to someone else and sever relations. And then we expect [changing tack] - for this reason, respect for the father and mother, kissing the hands and feet of the parents, not sitting in front of them and showing disrespect have some meaning then. These are have public reflections.

In my view, we should make a big U-turn. This is what our revolution did. That's to say we need to return to ourselves. Unfortunately, at some point, some people thought that they will be able to achieve something for the country by translating these material and capitalistic theories, selling them to people and damaging the foundations of our own culture. I want to say that this is the wrong path and it is a path that leads to an abyss. We can see world experience.

[First presenter] For your words, we can draw the conclusion that preserving and maintaining the wonderful customs of previous generations and the simultaneous development of high culture and a good economy can put us on a good path.

[Ahmadinezhad] This is definitely true. Allow me to mention another example. In our culture, there is the issue of faithfulness and truth. If it takes root in society and is implemented in all spheres, you and people who hear me should imagine how many public problems will be solved. In some places, we have so many problems that originate from the lack of faithfulness. Here is another example. In our culture, we hide our weaknesses. When we see a weakness in our neighbours, loved ones and fellow compatriots, our religious duty is to cover it up. However, if some people start a race of disclosing weaknesses or a race of spreading a word about one's weaknesses, then the public environment will suffer great damage. Our cultural figures and thinkers should enter this field, spread their ideas, create theories and set our internal feelings in motion. They should represent these values in the language of arts and culture. In order to reach an optimal point, we should collect everything together.

[Ahmadinezhad] You mentioned a good point. First of all, I believe that our university professors, seminary scholars and artists are all able to meet this need. There is no need to involve someone in this work and re-train them. No. Our university professors in the sphere of humanitarian sciences, our seminary scholars and our artists have the skill to do that. We only have to pay attention to this mission. The skills they have are for all people of the country. All practices this culture. They tasted its taste. Resources are at their disposal. The only thing is that they ought to tent their views towards our authentic identity and produce and this is possible. This is what the government should protect. This is so sure. The decisions we made in this province are mainly concerning this field. Some decisions are about infrastructures and software which ultimately, are of imperative. The main part regards software. Apart from the normal budget and the budget which has been approved for the province in various spheres, we allocated a stable amount of 30bn rials only for cultural production in East Azarbayjan alone. We said that we would allocate it every year, by the grace of God. I declared my expectations from the whole country. My special expectation from East Azarbayjan Province and Azarbayjan is great and even greater. Due to the past of this province, its performance has led to greater expectation for us. When we look to the past of this province and its politics, they had the first say, at least, over the past 400 years. It is the same with the spread of culture and arts. It is the same with the spread of the economy. It is the same with the spread of public solidarity, vigilance, struggle and sacrifice. We see the peak of bravery, honour and self-sacrifice in Azarbayjan. It does not mean that Iran's other parts lack such features. Thank God, today all parts of Iran are one single body. After all, in Azarbayjan we witness exclusive features for Azarbayjan. We see the highest point of serenity, sincerity, self-sacrifice and faithfulness. We have greater expectations from the scientific spheres, provincial universities and provincial artists. We know that it is a very difficult job. The creation of great values has always been difficult. All people who changed the course of history or authors of inventions chaining its course [changing tack] - great work was always been difficult. It was not possible to live quietly, to eliminate all obstacles, to live comfortably and carry out great work. This is a region of men who love difficult things. We saw the Sacred Defence. The date of 29 Bahman 56, that event happened, which was an explosion that deposed tyranny. No-one expected the tyranny to fall so quickly. It was expected to remain in power for at least 30 years. The despotic, dependent and anti-national government. An explosion gave hope and all the Iranian people realized that they [tyranny] are coming over. People told each other, "Did you see what happened in Tabriz" and in this way the process started. Mourning ceremonies to commemorate the fortieth days [of people killed during demonstrations] finally led to 17 Shahrivar, and it was over and it became clear that it can be defeated. Well, these particularities brought great expectations. We expect that the people of this region will be in the vanguard on this issue just like they have been in the vanguard of movements of change, revolution and ideals over the last 400 years. I think it is not an exaggerated expectation.

[Second presenter] Mr Ahmadinezhad, our colleagues have taken down messages from our dear people for you. God willing, they will be at your service. Until Your Excellency arrived here, we received more than 10,000 messages. I would like to inform you of some of them so that Your Excellency can answer and make comments. We would like your permission to broadcast the first part of the phone calls which the Radio and TV Organization received. God willing, we will be at your service again.

[Question One in Persian] I want to welcome Mr President and the government delegation. I would like to ask what the assignment of this 99-year housing will be. Why is it not being implemented and not being handed over to the people?

[Question Two in Azari] I am from the village of [name indistinct] in Sarab [Township]. I have been working in the communications sphere for 30 years. We have no insurance and nothing else. I don't have a house. No-one has given me any answer in the 30 years. We have not even been given justice shares. Please let Mr Ahmadinezhad know about this so that he can take care of us.

[Question Three in Azari] What will happen to these justice shares offered by social security?

[Question Four in Azari] My question is about inflation. They say that with inflation accounted for 25 per cent in 1387, prices of meat and chicken increased by 14 per cent. Chicken cost 1,200 tumans and now costs 2,700, and meat cost 6,000 and now costs 13,000 tumans.

[Question Five in Azari] We bought an apartment in Andisheh. Everyone has bought a flat here, not just me. We belong to the lower strata and are workers. To make sure that the interest rate is low, we took a loan from Bank-e Melli. It is a fast return loan. They say that there should be no interest on it in five years. Our monthly [salary] is 300[000] tumans and we have to pay 220 tumans. If possible, please take a decision on this and reduce the fee.

[Question Six in Persian] This new housing minister who appeared on television said that those who register with the Mehr housing project should have 13 million [tumans around 13,000 dollars]. I would like to inform the housing minister [Mr Nikzad] and dear president that those who have registered for the Mehr housing project do not have 13 million now. Tenant workers do not have 13 million anyway. If they had 13 million, they could have bought it from another place.

[Question Seven in Persian] When our dear Mr President visits our province, departments listen to people's words very well. But when our dear president leaves the province and goes to Tehran, departments do not listen to us.

[Question Eight in Persian] I have a request for Mr Ahmadinezhad. My children are small. I have three daughters and one son. They are too small. My son is 12 years old. I am poor. My husband has died. I have no-one. I can't get them educated. Please help me. May God give him success in his work. I am calling from the Imikcha village of Qaraagaj.

[Question Nine in Azari] My husband had a car accident and I am a pensioner. My son who is the only bread winner of our family is due to go to military service. None of my requests on the exemption of my son [from military service] has been accepted. I do not know what to do. As I said, he is only person feeding my family. Wherever I apply [for a job], I am told that something is wrong with my documents. If something is wrong with my documents, why did you pension me off?

[Question Ten in Azari] The Imdad Relief Committee gives loans to the tune of 5,000 [tumans]. This year they asked us to apply for loans. But now banks are demanding that we present two staff employees as guarantors and mortgage. As an employee of the Imdad Relief Committee presented me to banks, where can I find two staff employees or mortgage? If I had such an opportunity, why should I apply to banks?

[The first presenter] I thank my colleagues. Mr Dr, I wrote [the questions], if you let me, I will read them. I thank my colleagues to prepare the first part of telephone calls. Mr Dr Ahmadinezhad, a question was on justice shares. A man who said he has worked in the Telecommunication Company for 30 years and he has no insurance. A friend asked about inflation which was announced 25 per cent...

[Ahmadinezhad] Let me to answer one-by-one.

[The first presenter] Yes, please.

[Ahmadinezhad] In the justice shares discussion, if a day-labourer or a contractor works in the Telecommunication Company or other places, he will receive justice share. I urge the head of the Economic Affairs Office of the province to resolve this issue and please give the telephone number to him. He [head of the Economic Affairs office] will give the application form. Now, we are in a level to cover those day-workers who cannot send their forms in the past levels. Today, they told me that the province has 300,000 shares for those people, who are not farmer, employee of state offices, and workers. The shares are for those who are day-workers and were not registered. These people can go to the offices and the heads of the offices should try to resolve this problem. You [presenter] please give the telephone number of this caller, and our colleges will resolve his problem.

[The first presenter] Our colleagues will give the number. A friend spoke about inflation. He said when the inflation was announced 25 per cent we bought [one kilogram] meat for 6,000 tumans [1 dollar = 1,000 tumans]. But, now when it is announced 14 per cent, we buy meat for 13,000 tumans.

[Ahmadinezhad] It is a good question. I got it. It is a good question. You see, the inflation is not calculated by one good. Over 300 goods are calculated for inflation. They are calculating according their shares in livelihood, the weight of goods, and the changes in prices. The Central Bank has formulas and it calculates and announces the inflation. It is possible that we have growth in some goods, and we have low growths in other goods. When they calculate all of them, they reach a number and announce it. Some people calculate the prices of chicken and egg; no, it is wrong. The inflation is not calculated by prices of one good. We hope to control the red meat and white meat by government's decisions in this aspect and resolve the problem of this citizen.

[The first presenter] Mr Ahmadinezhad, a friend spoke about the [necessity of having] 12m tumans for Mehr housing issue...

[Ahmadinezhad] 13m tumans.

[The first presenter] 13m tumans...

[Ahmadinezhad] Did he say 13m tumans?

[The first presenter] I knew 12m, but our friend said 13m tumans. I knew it was 12m tumans. This is a special anxiety among those who has registered...

[Ahmadinezhad] It is wrong. It is impossible. You see, we give the land and also we give 15m tumans loan. We said them do not stress to finish the building and also finish the facade and internal issues. No, there is no need for facade. They can spend on their houses how much they can and finish the main parts of construction. They can build windows, kitchen, and lavatory services in order to prevent the cold and hot [weather]. Then, they [people] can finish their houses in the future by simple construction projects. We built our house in this manner. My father, God bless him and all of your died relatives, built our house in this manner. It was impossible to finish the house at once. Our house did not have facade, internal issues. It had only simple walls by gips. We lived there and then continued the construction in the future. It is impossible to finish a house by 15m tumans. They give 15m and people can bring how much they can like 3m, 4m, 5m to finish the building in a simple shape. They can build windows, doors, and main issues in order to make a place to live. They can give money for water and electricity. Then, they can continue other issues such facade in future. This will reduce the expenses. We do not have any exact amounts in this aspect. It is wrong if someone says [people should have] 12m, 13m, and 10m tumans...

[The first presenter] so, the reports on the necessity of having 12m in the beginning are wrong.

[Ahmadinezhad] Surely, it is wrong. I know that the Housing and Urban Development minister has not announced this report. If he said, then he is wrong; because, we approved this kind of issues in the housing council. We give the land for free and also 15m tumans loan. What they want they can build there. Only the issue is to build a house which will be able to live in it. If they go to the house, then they will not pay rental fee. They will give the rental fee for their loans' payment and they will have more money. When they finish their banking payments, then they will finish the facade. The facade is not [necessary] for living. I wish everyone has money to finish the facade and build everything. In this case the houses would be chic. It is our dream.

However, a majority of those who have been registered in the Mehr Housing Foundation are not able to do this issue. So, no one in cooperatives and other places can say bring 12m tumans. Why should people bring this money? They should give money to people. Each cooperative cannot do this; should give the work to people. People will build their houses by themselves. It is possible that people go and work in their houses in evenings. They, their sons, and wife can go and construct their house. It will be a kind of aid and it will reduce their expenses. This is the method of work.

[The first presenter] Mr Dr, the two employee sponsors' issue [to receive loan] is proposed many times. Now, a friend called who was needy of Imam Relief Committee and asked for example they give 5m tumans, 3m tumans loans, but the condition of bank is...

[Ahmadinezhad] Or an apartment form Melli Bank, is it right?

[The first presenter] The condition is having two working sponsors; this is really hard for people to prepare this conditions. The employees are also in a bad situation...

[Ahmadinezhad] I agree with you; but the money of bank is people's money. Bank should give back the money. There are some rules for banks. It is difficult, I know, but bank has no money, people are owners of the money. People give their money to bank, and bank gives that money to other people. It should have a guarantee to give back the money.

[The first presenter] In your opinion, is there any mechanism to resolve this issue?

[Ahmadinezhad] OK, we will discuss this issue, if it is possible to resolve, we will do. But, without guarantee it is impossible. I do not say they will not give the money back. They will give back.

[The first presenter] At least the banks can want one sponsor with one people who has credible business licence!

[Ahmadinezhad] Maybe it is possible. One sponsor is good. I wish we will achieve to a point that signatures will be enough.

[The second presenter] Mr Dr, here is a place that I want to speak, in some places they ignore the person [who received the money] and hold the sponsor. If somebody is sponsor of another person and the owner of loan does not give back the money, they should firstly come and want the money from that person. If the owner of loan cannot give back the money, then they should want the sponsor to give the money back. But in our system, the person who received the money is relax and when he does not give back the money the bank will have problem with the sponsor...

[Ahmadinezhad] I do not think so. Please bring examples. I think it is unreal. They should want the money from those who received the money. If he cannot pay his payments, then the bank complains, if there is any real estate as collateral...

[The second presenter] I do not speak about Mehr Hosing Foundation. In regular loans...

[Ahmadinezhad] Those loans which have sponsor instead of collateral...

[The second presenter] Yes, if the owner of loan does not give back payments, no one asks he has the money or he does not have money to give back. Immediately bank goes to sponsor...

[Ahmadinezhad] Maybe it is exception. Generally, who received the money should give it back. If not the bank will complain and the person will go to prison. If he is in prison and it is clear that this person cannot give the money back or he is not accessible, then the sponsor should answer. If you know any example, please introduce us and we will warn banks.

[The first presenter] There are two-three issues and it is possible that you want their telephones to call them back...

[Ahmadinezhad] Yes, yes.

[The first presenter] A woman called and said her husband is disabled...

[Ahmadinezhad] He is pensioner.

[The first presenter] Yes, he is pensioner and there are some problems for her son in his military service. If he is disabled, then his son should not go to military service...

[Ahmadinezhad] Yes, if he has necessary requirements, then we will help him. Please give me contacts and I will give to the interior minister to help him.

[The first presenter] A middle-aged woman called, and I think she was very tired because of works in farms, because her voice was tired...

[Ahmadinezhad] I thank her for her efforts.

[The first presenter] She said he was not able to make condition for her children to continue their education. Her children want to be educated, but she does not have finance for this issue.

[Ahmadinezhad] Please give me her telephone number. I hope the government will help them in education aspect.

[The first presenter] Mr Dr, a man has bought an apartment in Andisheh district of Tabriz. His payments are high, but his salary is only 300,000 tumans. His loan is five-year loan and he has some problems to give back the money. He does not know what he should do.

[Ahmadinezhad] Well done, he received loan form rapid job-creating scheme and bought a house. I heard this. He received loan form rapid job-creating scheme. Well give his telephone number. Is it Melli Bank? Which bank is it?

[The first presenter] I do not know which bank was it.

[Ahmadinezhad] OK, give me his experience [documents]. From here, I want the manger of provincial bank to help him and give him more time to pay his payments. But, who goes to receive loan should know the title of the loan and his ability on payments. The loans have timetable. If the loan are according to rapid job-creating scheme it is clear that loan is aimed to buy primary goods fro business. If the loan is the cycling capital loan, then it has its special timetable. We have loans for investment and houses. The housing loan is over ten years. They used other titles [loan] and bought house...

[The first presenter] So, the payments will be for five years.

[Ahmadinezhad] Well done, give contacts of this person and hopefully the bank will help him.

[The first presenter] Mr Dr, you also heard that a man said when you and the cabinet are in the province, the offices are working normally and resolve people's problem easily.

[Ahmadinezhad] I hope it is wrong. If it is true, I will travel to the province every day. Really, we should come every day to help people. I will resolve this issue too. Our colleagues in offices are doing their job and I want them to not allow the unacceptable behaviour of one or two employees demolishes all their efforts. Today, we held a meeting with the officials and we negotiated with them. I hope we will not see this issue in [East] Azarbayjan.

[Presenter 1] Mr Ahmadinezhad, considering the phone conversations and the people who made a call, let me to bring the discussion into the Smart Subsidies Plan's field. Of course, in the today morning address, you focused the part of the speech to this issue and described it in details, which was useful completely. I would like that the loved people get aware of the issue of Smart Subsidies Plan from you directly, as the highest executive manager of the country, so that the doubts and unclearness that the people have are removed with the help of God.

[Ahmadinezhad] As it was announced previously, the process of the targeted subsidies plan is a big and important and influential work, which prepares the ground for the country's economic development. All these talks are right. It is a big work, an important work, an influential work, a ground for the economic reform in the country. However all these characteristics do not mean that they should break the people's calm living and create problems for the people. No. The Smart Subsidies Plan aimed at removing the people's problems. Let me have a look through our economy. Are we tight in money? No. Do we work less? We do not work less in fact, in spite of talks by some, which are vain and baseless. These are the data published by distrustful sources to damage the spirit of nations. Does our farmer or labourer or teacher or manager or businessman work less? They all work enough. They all make huge efforts. So, we have a wealth and we work. Are we tight in knowledge, science and thinking? No, we have enough. Do we make little investments in the country? No. How much work are we doing? How many roads, bridges, schools, factories are being constructed? Nevertheless, we all feel that the work is wrong somewhere. All we feel that the speed of the progress of the country does not correspond to the volume of our investments and efforts and the problems are not being removed with the required speed. Well, a part of the matter are cultural bases and processes. Let us to set aside this part.

The other part is the methods of the economic management. We have two factors in the economy, which are tools in the hands of the government for the arrangement. One of these is taxes and the other subsidies. There are some other tools but those are not effective to this extent. Certificates and other things like those. The government performs several works through arranging the taxes: directs investments towards specified direction, withdraws the share of society from wealth and re-distributes it. When a person pays taxes we say you did well, this part is a social share, so let me take it and distribute in other fields. It is flexible. Those who have more income or those who use public sources more they get more taxes. It means that he takes the social share and return it to society. If the government does not want a work to be performed, because it is harmful for society or is not effective enough, and if it does not want the investments to be injected there, it increases taxes and the investment do not go there automatically.

The second tool is subsidies. Subsidies are opposite to taxes. The government takes taxes and distributes subsidies. These both have the same target. What for we pay subsidies? Because there is a social group always, which is unable to provide the minimum level of its living. The government is obliged to provide this group with subsidies. It is an obligation: the obligation of the government and especially the Islamic government. Some come and say begging and so and so... I will say later who they are and what do they seek for. It is the obligation of the government and the management. Iran is a big country with a 70-million population, eventually. All these people are unable to provide themselves. Somebody is unemployed, has not find a job, because all the 100 per cent of the population are impossible to have a job. Whether should a person who could not find a job for any reason stay hungry, or the Islamic government should come and say "well, while you are unemployed I will provide you with the minimum unless you find an appropriate job. I will provide your minimum. Because a social group is unable to provide its living by itself.

Second, there is a group which suffers from economic fluctuation. Our economy is not separate from the world, eventually. The world is changing as well. The economy always fluctuates. A groups does not suffer from these fluctuations, thanks to god. But the other group does suffer. Who should recover this damage? The government should pay subsidies.

I would like to refer to the production. The government want to improve a production. You see, the people do not compete for making investments. They have a little income and nobody can make an investment. However this production is for the benefit of the country, it should be for the benefit. Like the agriculture. Thus, the government gives subsidies so that the agriculture can get on its feet because the country needs it. Let assume tomorrow the country will need something else: dental devices, medical devices or medicine. Assume, just assume, its income is little and it cannot make investments. The government gives subsidy. If we want to reach self-sufficiency, because we see that we will lose if we import from somewhere, or it is possible we get a disease, pollution or a political infliction. The government gives subsidy and says the people "you produce this so that our need in foreigners is decreased". These are fields that subsidies are being distributed. Or there could be a case that the government wants a specific commodity to be consumed certainly, like pasteurized milk. If the people consume milk, the healthiness of society will increase, which is for the benefit of society. The further expenses will decrease. The government pays subsidies so that the people could consume milk certainly. It wants to promote the consumption of a good for a determined purpose.

It is the same in other fields. In the insurance field for example. A group of society is unable to insure itself. Like our dear friend has announced here. The government arranges a budget and says "I will pay for all those who cannot pay for their insurance by their own", because a disease could damage the life of a person. It means subsidies.

How much subsidies are we distributing in the country currently? Are we giving subsidies or not in principle? Yes, we are giving subsidies and we are giving very heavy subsidies, as compared to the other countries. Where do we distribute subsidies? We allot subsidies to the energy sector; to the bread sector; to the agricultural products sector; to the pasteurized milk sector and to many other sectors, like the industry and trade we are allotting subsidies directly or indirectly. We give some subsidies directly and some other subsidies indirectly.

How much subsidies do we allot? It is an important question. How much subsidies we are distributing? We can account now with people. Let us start from the energy sector. How much energy do we consume in the country? We produce 6.6m barrels of oil and gas daily. I converted gas to barrels. How much is being exported? Some 2.4m barrels. How much remains? Some 4.2m barrels. Thus, we consume 4.2m barrels of oil daily. This volume is equal to the volume of the consumption in countries which have 15 times more population and which economic production exceeds Iran's production several times. I mean we consume a lot. No country in the world consumes like we do. I wish our consumption turned into the national wealth or into the national production or went to the people's pockets. But it does not go, we just consume. We burn. We do not make a required conclusion from this matter. It is not good. It is the Consumption Model Reform year. The most important think that should be changed is the energy. Multiply 4.2m barrels by 75 dollars, it makes up almost 300m dollars per day, which is about 300bn tumans. Multiply it by 365. How much it makes up? It makes up 110,000bn tumans. How much is the government taking now from this sum? Some 3,500 in total. We have several thousands in the electricity or other sectors, which let me set those aside. The government is paying these 110,000bn dollars [as said] indirectly. I wish it went to production, but it doesn't.

I wish all the people use this equally. It would be great. But they do not use it equally. It is being used unfair. If we categorize the people's income basing on the income [rate], and if divide it into ten social strata starting from the first strata up to the tenth one, from the income aspect, where the first stratum would include those who have less income and the tenth one those with the highest income. I wish all the Iranian people became the tenth stratum one day, and everybody had a high income and were prosperous. God willing, it will come true.

However, our researches during the last 50 years show that the tenth stratum, who are the richest people - God grant them health, thanks to God and God grant everybody reaches this level - these people consume the energy over 30, 35 times more, than the first stratum does. It means that the subsidies that we allot exceed the consumption of the lowest stratum for 35 times. Is it fair?

It is the same with the rest of products. The procedure regarding some products is wrong enough. I brought an example today morning in the meeting with friends. Let's say chemical fertilizer. The government is paying 900bn tumans of subsidies annual. Divide it by 3m-3.5m farmers, 4m farmers. Every single farmer gets over 200,000 tumans of subsidies for fertilizer. We direct the subsidies for fertilizer into the system and tell the farmer "go and take your subsidy by your own". How much could he take? How much time should he spend? It turns into a cascade and the farmer gets the one third of the subsidy. The rest of the sum disappears in this chaos.

The same is with milk. We allot over 1,000bn tumans subsidies for over 2m t of milk. It means that we are distributing 2m t of free milk among the people. But, as far as we distribute it in a wrong way the people do not get it or get a very little quantity of milk in the glass or plastic bottles. Or let refer to the bread sector. We are paying 4, 600bn tumans subsidies for bread this year. Divide it by 70m and see how much it accounts. It makes up almost 65,000-66,000 tumans per person. A four-people family - the average Iranian family contains four persons - gets 260,000 tumans annual. How much bread do you buy in principle, how much bread do you purchase? A kilo of grain costs 300-350 tumans and the Sangak bread [the sort of bread baked on stones] costs the same. If the bakers use spices, like sesame, or bake it well - like they do in Tabriz - the price will raise to 400-500 tumans. They [the family] eat two breads daily no more. A four-people family eats two big 500-tuman Sangak breads, which makes up 1,000 tumans, while the government pays almost 260,000 tumans. If we divide it by 360 days we will have 250 tumans. Thus, if a family pay 280 tumans it will eat the best-quality bread. However, at least the one third of these 4,600bn tumans is being lost and does not reach the people. Why should it reach? It is nothing else than a waste. We consume over 12m t of grain while we should consume 9m tonnes. Why? Would not it be better if we consume 9m t, sell the rest of 3m tonnes and give the money to the people or spend this amount on creating welfare, prosperity, schools and hospitals? The same is with other sectors. So we have to reform it.

[Ahmadinezhad] A presumption existed previously that we would omit subsidies. It is very bad. To omit subsidies means the same as to damage a huge part of society. It wrong basically. We were against this presumption from the beginning. The only work that the government wants to perform is to make subsidies purposeful. We want to pay the money for energy to people directly. Those who do not consume would save the money. Those who consume should pay. Those families which do not consume even a litre of petrol per day... Currently we consume 60-64m litres of petrol and almost 85m litres of gasoil, the both make up 170-140 t, add to this amount gas and other and it will make 600-650m litres of consumption, which is 10 litres for a person. There are families that do not consume even two litres, right now. They have no chance or ability for the consumption. The others consume 60 litres. Then why should we pay the money for two litres to the consumers of 60 litres? We say dears everybody should get 10 litres, and we will pay everybody for 10 litres. Those who do not consume will save their money, and those who want to consume 60 litres should pay. They will get the same amount of subsidies like the others and should overpay for the rest of petrol that they consumed. We should not take the money from the pocket of needy and put it in pockets of rich. It is wrong. We want to make purposeful. The issue of the omission of subsidies is not being discussed at all. Whatever is being gathered will be returned again. But will be returned in a right way...in a right way.

Several events will happen if we distribute subsidies in a right way. First, the public consumption will decrease. Our calculation shows that we will have a 20 per cent decrease in the first stage. We have 110 types of energy subsidies and at least 10 types of other subsidies. It makes up 120 types. The 20 per cent of this amount makes up 24. We ignore those other 10 types of subsidies, and the 20 per cent of the 110,000 energy subsidies make up 22,000bn tumans which remain in the bag of the nation, in the people's pocket. It could be spent either for welfare and prosperity or on schools and hospitals' construction. Nobody will suffer from it. We will diminish the gas, electricity, petrol consumption of the country tomorrow. Who will suffer from it? No damage would be imposed. It is the same like you advise somebody to quite. Will he suffer from it? We say "You are burning the money, do not do it. It is in your favour. You pay 1,300 tumans and smoking cigarettes. If you quite you will save 1,300 tumans." Will his situation worsen or better if he quite? It is the first matter.

Secondary, is that the economic situation of at least our six strata will better definitely, with the help of God. The situation of the one of our strata will remain the same. The annual savings of three strata, which have the highest income, will decrease a bit, which would not affect their living. They have been purchasing property and saving money annual, which will decrease a bit. It will not provide a crisis in the country. Why should a crisis occur? We are working together.

What is important is the people's buying attitude. If somebody today... [Changes the topic] We do not care about prices, which are being controlled by the government, however the price will be will be. You can buy two chickens for money you have in your pocket. The white meat costs 100 tumans and you have 200 tumans at you. The white meat becomes 120 tumans but you have 360 tumans in your pocket. So, how many chickens you would be able to purchase? Three. Then, what is better.

[Second presenter] Three is better.

[Ahmadinezhad] Three is better, definitely. It is the matter of the buying attitude. Yes, we have a one-time change in prices, but on the other hand the inflation will be eradicated. One of the main factors, God willing, one of the main factors of our inflation is the situation with the distribution of subsidies and the state expenses. The government has to recover the waste. Where the money for recovering the mentioned 20 per cent is being taken from? From the people's pocket. Who does pay these? The government does. How does it pay? It should sell the oil, give the money to the central bank to convert it into rials, will take it to the market, because there is no other option. This creates an inflation. Of course there are other reasons as well. Nobody have an initiative when we distribute subsidies in this way.

Today, our industrialist wants to purchase a factory. There are two factories. He is told "Dear Mister, this factory consumes 100 litres of gasoil and gives you one tonne of steel. This one consumes 300 litres and produces one tonne of steel." The first one costs 1,000 tumans the second one costs 500 tumans. Which one would he buy? Would he buy the 500-tuman one? He should buy the 1,000-tuman factory, diminish the consumption of gasoil. Do you see the volume of the influence of production? A manager should allot a time to repair the management and diminish expenses, so that he can rival in the world and with foreign production. The foreign manufacturer gets free energy, free transportation, pays customs and comes here. Our manufacturer wants to rival with him. When this... None of these two has charges. If there is an income gap it means that the management is weak. When is the management being improved? It will improve when we move the right way. We should take an initiative, manage, diminish the expenses to have an income.

I do not mean that our industrialists are lazy. No, they make efforts and I kiss their hands. I want to say that we should treat the disease. It is very big work repairing those and requires the everyone's participation and help. The government has researched the issue for several years.

However, there is a group which is frightening the people. Why are they frightening? Why is not me frightened? Even when me or the government intends to take a heavy load it is not frightened. Why? Why do they frighten the people? There are two reasons to do it. There are some who are not aware of the matter. He is not literate. They did not research and discuss to be aware of the aspects of the matter. There are some other people who do not want this work to be done in principle, for any reason either by this government or ever in principle. Unfortunately, some people who created the law by their own and have been previously saying that this work should be done definitely, have written multiple items against the economic policy of the ninth government, claiming "you do not aware of the economy and should have done this work." Now, when we want to do it, they are opposing. They say "it is dangerous, it is dangerous"... while there is no reason for concerns in fact. Why are not we scared? I have spent at least 3.5 years on this issue. My colleagues have spent time. We researched the world, examined in details the aspects of the work and its nuances. Now, thanks to God, we are aware of the work almost in a high-level. We are sure it will improve the people's situation. We do not touch any sector except for those damaged previously. No sector. It means that we open the previous accounts and transfer the amount to the people's account. We say it is your account set your worries aside.

The day we sense that the price of gasoil will change we will raise the money to the people's pocket in advance. We calculated the other aspects as well. We calculated which product or prices could affect the gasoil price rise. This will happen once. Of course, it would be very dangerous if we withdraw and do not pour in the people's pocket. There would be no reason to carry out this work in that case, in principle. We do not want to omit anything. Even more we want to pour in the people's account, to the account of manufacturer, farmer, labourer, teacher, employee and everyone who works. To the pocket of the majority of society first and then to the everyone's pocket. Everybody should be involved in some works at the first stage. My colleagues are arranging it now. It is possible that everybody will be involved in some parts. The lower strata should have more income. It should be recovered eventually. It has been so for 50 years and now it should change. However, the other strata should take as well. God prohibit we create a social gap. No. All the nation is loved and respected. This system has been drawn up by the government 50 years ago. We have no social or stratum quarrel. The methods of the [then] government were wrong and now I want to repair it fairly. We do not afraid of it.

[Ahmadinezhad] This affair is definitely for the sake of the country's economy and during four-five years our economy will be distinguished in the global level. By the execution of this project we will eliminate poverty. Currently, we have nearly two million families, which live on 60-70,000 tumans(60-70 dollars)maximum, each family. Some of them are under the protection of Welfare and Relief Organizations, less than two million families, having 1-2 members, nearly 1, 5-1,7m families. They live on 60-70,000 tumans. Let's see on what they spend that 60,000 tuman. Now if we add 1,500 tuman. Those things that one spends on them, how he can say the price has been increased. Well, this is more than was. Certainly, the conditions will be better, one will be able to buy something new and spend on his life, complete his food, clothes and health requirements. We should organize social insurance in the country; people will not have to pay 40, 50 or 60 per cent of their money for medication. Government should provide that for everyone. Nobody will pay money for medication, but those having particular agreement and income, will pay one per cent monthly. Those, who have not income, why should they pay?

This project is definitely for the sake of the county, which will rise the production of the country and increase country's exports, will undoubtedly eliminate poverty and one of the main columns of inflation. During recent 40-45 years, the average inflation was 15 per cent. Every year 15 per cent inflation: that means money goes from the pocket of those people who have not or are getting stable salary the money goes to those pocket who have real estate or stable property. 45 years 15 per cent yearly. Just calculate 45 years with 15 per cent and see what happens! This is a process of economic demolition. If we turn this 15 per cent into 3 per cent, it's a revolution, and it will happen, God willing. The government is determined and certainly, we pursue it continually. Hopefully, the government will have this important tool and finally this is a load which could not be transferred by a small track, it needs trailer truck. The government has been practiced, educated and learned the driving (of the trailer). Yes, it needs several trailers, the load is heavy, but we have to carry it. Thus, I say carrying this load is inevitable. Our 4,2m oil barrels are added 8-10 per cent per year, which means after 7-8-10 years we will have no oil for export and help people, we will use it for (internal) consumption. Yes, if we reach to a point when we will not export oil, turn our oil to products, organize value added. We will use it inside the country in order to have better production. When they buy from us an oil barrel at a price of 75 dollars, make products and sell at a price of 500 dollars, we will make products and sell them ourselves! Not just simple consumption. This is full of damage for the future and even now. We are determined to carry out this plan for the benefit of the people, deprived personalities and is directed to the elimination of poverty, because the resources belong to the people, it is under their maintenance and solves their problems. You should manage yourselves. The treason that happened to our nation before the revolution, took away people from the sphere of the economic management. They though the government would carry out all the affairs instead of the people. While people should manage the economy and should learn where and how to spend money, make or do not make investments, buy house or go to the stock market, buy a factory or a car. People should make decision themselves; we should not make decisions instead of the people. We want to hand over this authority to the people. Of course, we have foreseen to prevent some people misuse, god forbid, to create unfairness in the market and I must be sure that people are vigilant. When I am intended to carry out it, ill inform people. People should be watchful, nothing will happen about our execution of the plan, the situation is very good and the economy will be developed rapidly and with the help of God, we will execute this project.

[The first presenter] Mr Ahmadinezhad, in this relation I have a very short question. Of course, the system of the payment of the subsidies is harmonized definitely, is it canalized immediately after the approval constantly and well-organized?

[President Ahmadinezhad] Before any measures, we have registered, identified and announced the declared reformations to be executed. After all this is done, we announce that all the within the unit bank account in the name of the head of the family. Some two-three months before we start, we put it [money] in the account. And we say - this is under your authority, do not worry, nobody will be remain out. But there are some aspects, which we will not make free from the first. There is a production and if we make it free, it will tumble down. We should make an agreement and say that we will give him this cheap gas for three years. He should reduce your consumption during three years, if not, his price will be the price of Russia. The system will be reformed.

[The first presenter] Will this happen in the industry field as well?

[President Ahmadinezhad]. I will give you example. Industry is divided, in some parts it has happened, no problems appeared. In some parts this will happen after one year, in some areas three or five years. For some spheres we can give subsidies to help their industry. These are divided, sign agreements that during three years they have to start their system and during these three years we will pay them subsidies under the seal of making reformations. If no reformations are made, they should pay. This is a serious issue and is the activity the economy's profound reformation. Certainly, take into consideration some other six sections are behind of it, such as banking, taxing. All of this we have already prepared. This is the base and if it is prepared, a new field for the investments will be prepared.

[The first presenter] Whilst all of this has not happened and people are not still participating in it, will not your support stop?

[Ahmadinezhad] We are vigilant and we start nothing unless we are ready. This is it. During a debate on TV, surely TV have to inform people, some people said that the government wants to tear down the country and that they will come and rescue the people. It is not true. We want to better the situation. You should have no doubts in this regard. This is confirmable in every scientific and administrative assemblies that the conditions of the people will be better by the will of God. It is enough to provide a 20 per cent save in consumption so that this theory turns into practice.

[The first presenter] Thank you. By your leave, our colleagues have prepared a song let us watch it, after continue our dialogue.

[Ahmadinezhad] Please.

[Ahmadinezhad] You see, now we talk. They say things all the time, but they can not do anything. I am telling you, they really can not do anything. They have not been able to do anything since 1386 [2007]. I announced in the summer of 1386 that our nuclear case was closed, because I saw that the course of events had changed. And they could not do anything. They did whatever they wanted but with no effects. It is finished. What do they want to do? There is no sanction that they have not imposed. They [imposed] the heaviest of sanctions. Now they may issue some papers, let them issue, it is no longer important, but they will not issue them. Even if they do, it will have no value. It is finished. The shadow of sanctions has been removed for ever. Our status has changed in the world now. We are operating at another level today. Those who wished us ill are now in another situation. Thirty years ago we were like this [showing one of his hands high up and the other lower down], they were here [showing his high-up hand] and we were here [showing his lower hand]. Even until five years ago they were here [showing his high-up hand] and we were here [showing his lower hand]. Now it is this way [changing the position of hands]. Look at the Middle East. I want to give an example to clear the issue. The Middle East is the most important part of the world. Anyone who wants to play an important role in the world, should play a role in the Middle East. The countries that are not present in the Middle East are second class. I do not want to give names. There are countries in Asia that are very much developed economically, but they are second class, because they are not present in the Middle East. All the issues of the world are intertwined in the Middle East. Why is America so sensitive about the Middle East? Because it wants to play a global role. There are big countries around us that have no role in the Middle East. They have lost their greatness. They can not make global claims. The Middle East is the most important part of the world. There are some countries that want to become global now. They contact us and say sir we want to play a role in the Middle East. I do not want to give names. There is no problem, it is very good. They are either our friends, or their friendship with us is strengthening. They come to me and say, sir, we want to enter the Middle East. The Middle East is the most important region in the world. I ask you, which country is the most important one in the Middle East? Is there any other besides Iran? Can anybody do anything in the Middle East without needing Iran? They can't.

[Presenter] It [Iran] is one of the main parameters of these equations.

[Ahmadinezhad] Iran is in a position that everybody needs it. Even America needs Iran, in whatever it wants to do. This is the result of that resistance. Of course, I should tell you and the Iranian nation; this is due to the special kindness of the Lord of the Age [12th Shi'i Imam]. I have felt this with all my soul in the nuclear story. It is possible to say that he controlled everything himself. Wherever we went the road was open in front of us. Do you remember Imam [Khomeyni] saying that in this revolution whatever sphere we enter, someone has already opened the doors before us. I have felt this, with all my soul in the nuclear [story]. I am grateful to that dear one [Lord of the Age].

What is Iran's standing at the moment? Iran's struggle in the nuclear case has been 50 times harder than the struggle for nationalization of oil. Its dimensions are much bigger. Not only did it disturb the domestic equations, it also disturbed global equations and finished them off. The credibility of the Security Council is now being questioned. It became clear that it has no function and is a biased organ. The UN's unilateral political relations have no application now. It is finished. Even smaller countries are now standing up to them. Every one has found out [the truth]. The world opinion turned in favour of Iran. What is the most important country in the Middle East now? Iran. So, which is the most important country in the world? Iran is the most important country in the most important region of the world. Therefore, the most important country in the world is Iran because no one can do anything in the Middle East without the help of Iran and any one who cannot do anything in the Middle East, is not a major players in the world.

Of course, we have this position because we are playing a positive role, because we have a humanitarian outlook based on justice. We want Afghanistan to be governed based on justice, the same with Iraq. That is why nations support us. And because we have the support of nations, they cannot do a thing. They need Iran. This is where we stand at the moment.

[There are repeated brief breaks in reception each lasting a few seconds]

Now, what we want to say is this: You have been in a struggle with us up to now. You have two choices, either the continuation of this struggle or cooperation, you choose. We, are making the decision.

We believe they have realized that confrontation is of no use. Of course, there are people who are after confrontation. The Zionists are very angry. A European country is very rude and bad tempered. They are very angry too.

[Ahmadinezhad] We do want to move towards the future. How are we supposed to get there? The interests of the Iranian nation must remain intact. The integrity of the Iranian nation must remain intact. What have we done? Come say it, tell us ... what changes have you made? There are no problems - especially with me. I am a man who is up for [making] decisions. Our nation is a mighty nation, it thinks big, it wants a distinguished position. We have no problems making big decisions. However, the circumstances must be right. We have to see that the national interest and the honour of the Iranian nation are guaranteed. After that we would be up for making decision wherever. We have to see. Some changes must happen. Well, after all, they do things and then they say other things - these things don't add up. They really don't add up. We would like fundamental transformations to take place. We really are interested in fundamental transformation. We are prepared to help. We have announced it. However, we first have to make sure that there is a will for effecting true transformation.

[There are repeated brief breaks in reception each lasting a few seconds]

[Ahmadinezhad] Yes, we know, they say the Zionists will not allow true transformations to take place, or this or that other group will not allow it. Yes, that exists. There are always obstacles to big and constructive decisions. He who is successful makes decisions in spite of those [obstacles]. If you want to contemplate [the obstacle], I said it in Mashhad, I said it to Mr Obama. I said you must make a choice between working with countries in this region and supporting the Zionist Regime. You must choose one or the other. The two of them side by side don't add up. Because the countries in this region don't want this. They kill, they are murderers, they are rapists, they are occupiers. You want to give them free reign and then on this side of [the fence] you say I want to be your friend. You make speeches. No problem, speeches are good. But when it comes to deeds, well in the end decisions have to be made.

[Ahmadinezhad] The Iranian nation has no problems. No one has ever said relations with America are sinful. Not so, both our beloved Imam [Khomeyni] and our eminent Supreme Leader have said that [relations] have to be equitable and respectful. They must recognise the rights of the Iranian people and affirm the dignity of the Iranian people. Otherwise ... you issue statements ... thank you very much, we shall issue statements of our own. There are no problems with issuing statements, but statements don't solve anything. Lets put the past behind us. Well, in the past you were the ones who always oppressed us. You ask us to put that aside. The Iranian nation will put it aside. But what is our outlook for the future. Show a sign, so that we can tell that something has really changed - that you no longer want to be the overlord, you no longer want to insult [us], you no longer want to trample on the rights of the Iranian nation. These last few days, you took some decisions that contradicted your words. This has to be clarified.

At the moment, thank god, the situation is good and these discussions that came up on the nuclear issue are about nuclear cooperation. We made a proposal, if they accept it ... if they reject it, well then we could produce our own. We shall produce our own [fuel].There are no problems. We gave them an opportunity to change that defensive atmosphere theyr were in, where they kept clawing at us. To shift their position form one of enmity to one of cooperation. The decision is theirs. If they chose cooperation in earnest, well the Supreme Leader has said it and I have said it as well - this is what our country wants. We never wanted to be anybody's enemy. We welcome equitable and honourable collaborations. But if they want to stand over there and make noise. Then they can stand over there and make noise until ... grass grows under their feet [Persian idiom meaning: until the cows come home].

[There are repeated brief breaks in reception each lasting a few seconds]

[Man speaking] In fact, over the past thirty-years we have travelled form barbed wire to the fuel cycle. Thirty-years ago we didn't have barbed wire. We didn't sell it, they wouldn't let us bring it, they would not allow it in. After thirty-years, we are now in dialogue with the European notables -- they as a collective on one side and our country single-handedly on the other. This is the path from barbed wire to the fuel cycle. It is truly cause to be grateful. Actually ... there is need for an answer ... and these creatures of god must give thanks ... god willing.

[Ahmadinezhad] Luckily, this province has a multitude of notables and sources of pride. You could do a summit every week.

[Man] Yes, thank god, that is so.

[Ahmadinezhad] This is an excellent suggestion and I am asking the provincial governor-general right here. I am asking the minister of culture and I will certainly raise it with the Cabinet. We have allocated funds.

[Man] Thank you very much.

[Ahmadinezhad] whatever is needed, in accordance with provincial legislature, and the province should appoint a governing board, in fact a group that would ... the work has to be very strong. These are our identity after all.

[There are repeated brief breaks in reception each lasting a few seconds]

[Ahmadinezhad] These are part of our identity. If they are introduced they would become role models. You should make efforts and the radio and television organization in the province should move in that direction also.

[Interviewer] Your Excellency Dr Ahmadinezhad, we don't want to take too much of your time. We are thankful for this third visit by Your Excellency and the cabinet ministers to East Azarbayjan Province immediately after your visit to Holy Mashhad. That is an auspicious event for our province and we are very thankful to you. Would you like to say something about the decisions which were made during your third visit to the province, particularly concerning East Azarbayjan and the dear people of Azarbayjan? We will not take more of your time.

[Ahmadinezhad] There were many decisions. Yesterday first vice-president spoke about those decisions and I also had an interview about them.

We made a number of good decisions both on infrastructure and content. The decisions concerned both small and major projects. What you mentioned about next Aban [month beginning 23 October] should become a national issue [as heard. Break in reception]. Concerning roads and transport, we decided to increase the speed of the trains in order to reduce travelling time.

[There are repeated brief breaks in reception each lasting a few seconds]

[Ahmadinezhad] We also made decisions on the province's highways and the province itself. We made decisions about electricity and health. New hospitals have to be built and equipped. Medical research centres, higher education and environment-related institutions must be established.

You mentioned that the cabinet ministers visited the province, [few words in Azari; presumably meaning they were carrying out their responsibilities]. The cabinet ministers were carrying out their [responsibilities]. They are fond of Azarbayjan and that is what draws them to this province.

[Ahmadinezhad] They come to Azarbayjan for whatever reason they can find [Ahmadinezhad says, using a light-hearted tone]. We beseech God Almighty to keep the banner of our nation's dignity forever raised and the divine talents of this land to flourish in the service of mankind. [Brief break in reception] - for the realization of a world management to become available to the Iranian nation as soon as possible.

May God grant success to all of you.

[There are repeated brief breaks in reception each lasting a few seconds]

[Interviewer] We also thank the dear viewers. God bless you all.

[Ahmadinezhad] I would also wish you all success. All employees of the radio and television organization did their best in the past few days. Well done to all.

[Interviewer] Thank you.

Source: Vision of the Islamic Republic of Iran East Azarbayjan Provincial TV, Tabriz, in Persian 1535 gmt 20 Nov 09

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