(Note: the following was translated from Russian)

MODERATOR: Good day, dear colleagues.

Our guest today is the Ambassador Extraordinary and Plenipotentiary of Iran to the Russian Federation, Mr. Gholamreza Shafei. He has been here many times, and he is well known.

The topic today is "Iran 26 Years After the Islamic Revolution".

Mr. Ambassador will say a few words at first and then answer your questions. Please identify yourselves when you ask questions and switch off your mobile telephones for the duration of the press conference.

Thank you.

GHOLAMREZA SHAFEI: First of all, I would like to thank you ladies and gentlemen for coming to this press conference. I will speak very briefly about our achievements over the past 26 years after the victory of the Islamic Revolution in Iran. We are beginning the 27th year since the victory of the revolution. And after that I will answer your questions.

We have completed three five-year plans of economic development in Iran, and during this time we had an achievement of 7 percent of the GDP. As for the management of the country, we have put forth a new idea. It envisages a convergence of religion and democracy. We think that people and man by nature want such a convergence, and when we want to manage society, we must take into account the opinion of any person who makes up this society. This is why we believe that a convergence of religion and democracy and the management of the country is consistent with the nature of man. A vivid example of that is the model we have created and been using in the Islamic Republic of Iran for 26 years.

During this time we held popular elections every year as a minimum. This is also true of economic and industrial development. We achieved impressive growth rates. As for metallurgical production, we made less than one million tons before the Islamic Revolution. Now we make more than 10 million tons of metal a year. The same is in other industries, for example, petrochemistry, paper production, food industry, and other needs of our society. We had similar achievements in these fields.

Given the growth in the pharmaceutical industry and the production of medicines, we export Iranian medicines to other countries, even though in small volumes. Iran has been lately paying special attention to high technology. A vivid example of that is the production of nuclear fuel in Iran. That's an achievement for our society.

At the same time we see that some countries that have this technology want to deprive us of the possibility to make fuel for our nuclear power plants, even though internationally recognized agreements allow any country to make nuclear fuel.

As for economic cooperation between Islamic Republic of Iran and the Russian Federation, some time ago we held the 5th session of the intergovernmental commission on trade and economic cooperation between our two countries, and we can say that we reached an agreement in all areas of interaction. We have created special committees and groups on oil and gas, nuclear energy, power industry, transport, and trade.

The important agreements we reached last year include an agreement on the creation of a consortium between Iranian, Azerbaijani and Russian railways to build a railway line from Kazvin to Astara via Rasht for further integration with Azerbaijani and subsequently Russian railways. There is another railway line between our countries, which operated in Soviet times through Nakhichevan, Azerbaijan, and Armenia and farther on to Iran. But because of the confrontation between Azeris and Armenians, this railway line has not been operating for more than 10 years.

We think that the operation and restoration of these railway lines will facilitate economic growth in Russia, Iran, Azerbaijan, and Armenia, as well as create a calmer and more secure situation in these countries for the benefit of all four of them. The former railway line that runs through Nakhichevan, Azerbaijan, and Armenia to Iran can handle about two million tons of cargoes annually. This is why it would be expedient to build a new railway line through Kazvin, Rasht, Anzeli, and Astara because trade turnover between our two countries grows every year in pursuit of the goals set for the North-South transport corridor. This is why the construction of this railway line will be expedient.

The heads of the Iranian, Russian and Azerbaijani railways will meet in Baku on February 6-10 to discuss this project. Besides, in order to boost trade between our two countries, we should also invigorate the work of the chambers of commerce and industry of Iran and the Russian Federation. To this end, Mr. Primakov, the President of the Russian Chamber of Commerce and Industry will visit Iran on February 11-13.

As for nuclear energy, which has drawn so much attention from the press, I want to say that cooperation on the Bushehr nuclear power plant continues. According to the schedule worked out by the Russian side, the power plant will be commissioned and will start operating in 2006. But of course all work has to be completed before the power plant can be commissioned.

Regarding the return of spent nuclear fuel, the Iranian side is ready to sign a relevant agreement, including a commercial contract and a specific document. It is expected that Mr. Rumyantsev, the head of the Atomic Energy Agency, will visit Iran at the end of February as part of these efforts.

As for negotiations between Iranian and European diplomats on a moratorium on the production of nuclear fuel, the negotiations continue. We hope that the negotiations will be crowned with success and will take account of the right of any country, to make sure that Iran will have this right and, on the other hand, to make sure that it will be possible to create an atmosphere of trust. I think I will stop here and I will be ready to answer your questions.

QUESTION: Mr. Ambassador, could you, please, say something about political relations between Russia and Iran?

You have not spoken about them.

Second, perhaps you could say a few words about the Iraqi election and Teheran's attitude to the outcome of the election and the election proper?

GHOLAMREZA SHAFEI: As for political relationships between Iran and the Russian Federation, I am pleased to say that those contacts, those relations have been at a high level, and the countries have certainly maintained contacts.

Throughout last year we had very good contacts at a political level between the foreign ministers, the secretaries of the security councils and at other levels, and those talks were very successful. Our parliaments have established very good relationships.

The Federation Council speaker, Mr. Mironov paid a visit to the Islamic Republic of Iran recently. Naturally, those contacts between the Federation Council, the State Duma and Iran's Majlis, in the framework of meetings between the heads of various committees, have continued. Mutual visits to both countries continue. We expect Iran's parliamentary group of friendship to pay a visit to Russia soon. In the near future plans also call for a visit by a State Duma deputy speaker. He will lead a group of parliamentarians that will visit Iran. A visit by His Excellency Vladimir Vladimirovich Putin to the Islamic Republic of Iran is on the agenda, but the date of the visit is to be announced later. This also concerns a visit by the Majlis President to the Russian Federation. The timing of the visit has not been fixed.

As for our regional cooperation on Central Asia, the Caucasus, the Caspian, we have interacted quite well on those issues. Both countries disagree with the one-polar world concept. Naturally, they find this concept unacceptable. Both countries want to see accurate interpretation of human rights, the struggle against terrorism, the struggle against drug trafficking. The countries have closely interacted on political issues in the framework of international organizations. Russia has voiced its willingness to take part in the Organization of the Islamic Conference as an observer, and Iran has backed Russia's idea, this initiative.

As for the election in Iraq, Iran has always proceeded from the assumption that the Iraqi people should themselves decide their fate. Naturally, Iran has done everything possible for the election to be successful. While it has not interfered, Iran has used its intellectual influence there. Naturally, we think that the Iraqi people should rule their country, their society. Occupation forces should be pulled out of Iraq. Iran supports this idea.

QUESTION: Mr. Ambassador, you have suspended your uranium enrichment program for several months, but said that the fate of this program will depend on further progress of talks with European countries.

What is the situation now? Are you going to extend the term of suspension of operation of nuclear reactors involved in the uranium enrichment program? What is the current state of negotiations with the Europeans?

Second on a different topic.

In your opinion, is there a chance that a Caspian summit meeting will be held this year?

We have waited for it to happen for so long. Thank you.

GHOLAMREZA SHAFEI: When we say "a moratorium" this means that this is a temporary measure. This is not absolute termination. This is a temporary measure.

Therefore, what we agreed on with the European countries is a moratorium, rather than absolute discontinuation. But the term of this moratorium will be extended. It will remain in place as long as the parties negotiate, until the Europeans are confident that Iran will only produce fuel for peaceful purposes, for its power plants. And Europeans should also convince Iran to further cooperate. They should convince Iran that it will be able to enjoy its rights in line with internationally recognized agreements, documents.

The Iranian side hopes that the parties will be able to reach accords in several months. Naturally, this will not take years or decades or centuries. This is certainly not the case.

As for a summit meeting of the heads of the Caspian states, unfortunately, one of the heads of state of a Caspian country found the date of the meeting unacceptable. He could not attend in January this year. This explains why no summit meeting was held in January.

On the other hand, a presidential election will be held in Iran in four or five months. Naturally, the next summit meeting will be held after the presidential election in Iran.

QUESTION: Is Iran ready to launch today another project similar to Bushehr? Could you say a few words about Russia's role?

GHOLAMREZA SHAFEI: Yes. Iran has in its program plans to launch 6,000 megawatt of such nuclear power plants. I think no one has doubts about the need for those projects to be implemented. Naturally, we do not have enough fossil fuel, coal and other organic fuel. So, we cannot rely exclusively on those resources. Sooner or later it will be necessary to employ other types of energy.

As for Russia's role in those projects, given its record of work in the Bushehr project, Russia's chances are high to win the right to implement those projects.

QUESTION: Mr. Ambassador, there have been reports in the press that Russia and Iran would sign an agreement on joint work on a satellite. Could you expand? Second, what do you think about prospects for military-technical cooperation between our two countries?

GHOLAMREZA SHAFEI: As for satellites, this is true. Talks on the issue lasted for many years, on the development of the Zohreh (Venus) communications satellite by the Russian side. It is a telecommunications satellite mostly, and we have recently completed the talks on the issue with the Russian side. Several days ago this contract was signed in Teheran. It is a $132 million contract. The satellite will be manufactured by the Russian side and the Russian side will also launch it.

Iran has owned three fixed points in space for 26 or 27 years. Naturally, it can use them for its satellites. We hope that in future we will promote this sphere of cooperation between our countries.

At the same time, we have continued cooperation in the military- technical sphere. Naturally, we have proceeded with negotiations on military-technical cooperation, focusing on defensive, rather than offensive aspects.

QUESTION: Could you comment on Teheran's attitude to the US Administration's statements concerning the fact that they did not rule out the possibility of the use of military force against Iran? How probable is this, in your opinion? What could be a possible impact of this invasion on the Middle Eastern region and the Caucasus?

GHOLAMREZA SHAFEI: First of all, I would like to say that statements by some politicians in the United States about Iran -- they should take account when making those statements, that they deal with the will of the people, with the common will of the Iranian society. They have accused Iran of attempts to produce nuclear fuel to be able to develop nuclear weapons or mass destruction weapons. There are no serious grounds for those claims, including from the point of view of the international law. There is no foundation for that among various opposing and lacking coordination groups inside our country.

Iran has adhered to the treaty on non-proliferation of mass destruction weapons. The Iranian government has also signed additional protocols to it. The Iranian government has observed the terms of those protocols even though the parliament has yet to ratify them. In line with those documents, IAEA inspectors can at any time visit any Iranian facilities with respect to which they have suspicions of being related to the production of nuclear weapons. All of our nuclear activities are controlled by the IAEA and other international organizations. Therefore, there is no practical basis of logic in the statements made by US politicians.

Fortunately, or maybe unfortunately, they don't have reliable spies to obtain authentic information. So, their statements are not based on anything. Besides, this idea of WMD creation is not supported by our people and different groups within Iranian society. If any country does such stupidity and attacks an Iranian industrial facility that was created by the efforts of all Iranian people, this will only cause the hatred of Iranian society. Americans have wanted to encroach upon our independence and the rights of Iranian people several times, but every time they were deported and kicked out of Iran with shame.

Once they carried out a coup d'etat against the legitimate government of Dr. Mossadeh in 1953. Several years later Iranian people drove out the shah who had been put to run the country. Another time they attacked central Iran, but their helicopters and planes collided, all of them died, and they were forced out of the country with shame. On another occasion they shot down an Iranian passenger plane, killing more than 300 people, in order to help Saddam Hussein. Interestingly, the captain who shot the plane down was awarded a medal for gallantry.

In order to support Saddam Hussein during the 8-year Iranian- Iraqi war, they bombed Iranian oil terminals in the Persian Gulf. We can all see what their support for Saddam Hussein has resulted in now. We think that American politicians will hardly dare another such step that may lead to total disgrace, just as the previous ones did. Our people want, while preserving their independence, to enjoy all the benefits that have been given to them by God Almighty, and we will not listen to any diktat from anyone.

I want to say that after these 26 years our people is much stronger than it was when the Americans were driven out of Iran. And you can see that Iran's intellectual influence increases every day in the countries where the Americans are present.

MODERATOR: I have a follow-up question.

How could you comment on reports that American commandos have infiltrated Iran and are already operating there?

There have been such reports in mass media.

GHOLAMREZA SHAFEI: We think that it is most likely psychological warfare. I want to say that the Americans have ties with the Taliban and the terrorist Iranian organization Monafegin, which was previously called Mojahedin. They have been declared international terrorist organizations, but the Americans have ties with them. These groups work as informers for American forces. But we have no apprehensions because all our activities are under the control and supervision of the IAEA, and if IAEA inspectors announce their visit just two hours in advance, Iran will give them permission for their work.

MODERATOR: Our time is up, colleagues. Thank you.

GHOLAMREZA SHAFEI: Thank you.

From the U.S. Department of State web site.