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President said that the United States was "absolutely incapable of inflicting serious damage onthe Islamic Republic of Iran and they (America) would like to hurt (our country) but they are not in a position to do so," .

The President however admitted that the US administration was exerting pressures on Iran. "Yes, there are pressures but this is a mistake," he said.

"I think Mr. Bush has committed numerous blunders. They are making mistakes one after the other in Iraq." Asked if a military strike by the US against Iran could be one such mistake, the chief executive replied: "No. They are not in a position to make such a decision. I think, there are wise people in America who would not let this happen. They are incapable. The pressure is more psychological."

He said that the US administration was trying to create an atmosphere of tension and intimidation inside Iran.

President said: "Regarding the nuclear issue, they (the Americans) know that they cannot do anything from outside. Their only hope is inside (Iran). They want to create -- in their wishful thinking -- an atmosphere of tension, disappointment and intimidation inside which could create division. They want to damage the people's solidarity. If this happens they would achieve their goal. Because this (nuclear) achievement is the outcome of our nation's resistance and solidarity. They want to break this integration through psychological war." Ahmadinejad stated that Iran was precisely watching all the movements of the enemy and its troops.

"Mr. Bush may wish to engage in some mischiefs in order to save himself but his status quo would not let him do so. Therefore, the only way for us to foil their schemes, including economic, political and other plots, is internal solidarity. This is the key. We must all be careful."

Mahmoud Ahmadinejad reiterated that Iran has complied and will comply with the regulations of the International Atomic Energy Agency (IAEA). The president added, "We have had utmost cooperation with the agency." President Ahmadinejad added, "Since our peaceful nuclear activities are transparent we have stood firm."

"If peaceful nuclear energy is good it must be good for everybody and if it is bad why certain powers enjoy it," said the president.

He blasted the bullying powers for condemning Iran because of making use of peaceful nuclear energy.

With respect to presence of IAEA inspectors in Iran, he said, "Based on its regulations, the agency presents a list (of inspectors) and the target country can say it does not accept certain numbers."

"But everybody witnessed how we were treated in this respect and what a hue and cry was created." The International Atomic Energy Agency (IAEA) said on Tuesday details on designating inspectors for the agency's member states is a matter between the IAEA and the states concerned.

The agency spokeswoman, Melissa Fleming was quoted in a statement released by the IAEA as saying that the UN nuclear watchdog was discussing with Iran its demand to withdraw some nuclear inspectors.

However, she added, "It should be noted that there are a sufficient number of inspectors designated for Iran and the IAEA is able to continue its inspection in accordance with Iran's comprehensive safeguards agreement."

The president added that as the agency dispatches inspectors to ran and installs camera in our installations, "we have requested the IAEA to present a report on inspections from other countries."

Ahmadinejad said that not all countries of the world, though they may have the will to impose sanctions on Iran, have the capacity to materialize such will. He said he was not worried about the future.

"We are not concerned about the future. Many world presidents have indicated their desire to continue relations with us. We are not even concerned about the restrictions imposed on our banks by certain states since they do not have a monopoly of the global banking system." The president reiterated a finding of the International Atomic Energy Agency (IAEA) that the Islamic Republic of Iran has not violated rules and regulations of the UN's nuclear watchdog, saying a recent report of IAEA Director-General Mohamed ElBaradei confirms this.

Referring to the anti-Iran resolution passed by the UN Security Council as a document of no significance, the Iranian president said that Tehran will find ways to cushion its economy from imposed sanctions and will prevent any resolution of the kind from being issued against Iran again.

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