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Your World Today

What's Next for Italy?; Madrid Train Bombings; Moussaoui Trial; Iran Poised to Join World Nuclear Technology Club; Hooshang Amirahmadi Interview

Aired April 11, 2006 - 12:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


HALA GORANI, CNN INTERNATIONAL CORRESPONDENT: A razor-thin margin. So, did this man really win? And what's next for Italy?
JIM CLANCY, CNN INTERNATIONAL ANCHOR: The long road to citizenship. With all the controversy over illegal immigration in the United States, we're going to explore how some people do it legally.

GORANI: And later, the retired brass versus the sitting boss. Some generals are speaking out about their former boss, Donald Rumsfeld, and how he's handling Iraq.

It's 6:00 p.m. in Rome, noon at the Pentagon.

I'm Hala Gorani.

CLANCY: I'm Jim Clancy.

Welcome to our viewers throughout the world and in the United States.

This is YOUR WORLD TODAY.

GORANI: We'll have those stories in a moment here on YOUR WORLD TODAY. But we're waiting on comments from Iran by the country's president, Mahmoud Ahmadinejad, about Iran's controversial nuclear program.

CLANCY: We are going to be bringing you his remarks live. That was the room where we were expecting him to speak. We will bring that to you as soon as he takes the podium.

But now to Italy, and the fears of political paralysis after a razor-thin margin of victory there. This was the country's closest election in modern history.

GORANI: Now, Italian newspapers are using headlines like "Divided Country" and "Split Down the Middle" to describe the outcome of the election.

CLANCY: And opposition leader Romano Prodi appeared before a large crowd of supporters in Rome a little bit earlier Tuesday, saying his center left coalition has taken control of the lower house.

GORANI: The winning margin is under 25,000 votes, only. Prodi expects to win the upper house, as well, but overseas ballots are yet to be counted.

CLANCY: Prime Minister Silvio Berlusconi, who has ruled the country now for the past five years -- that's the longest government in -- since World War II -- not conceding defeat just yet. The next step in the process is for Italy's highest court to certify this vote.

GORANI: The 315-seat upper house, the senate in Italy, and the lower house have equal powers. Any coalition would have to control both to be able to form a government in Italy.

CLANCY: Now, about 84 percent of the 47 million Italians eligible to vote turned out and cast ballots.

GORANI: Now, for hours after the voting ended, projections and returns swung dramatically between the two coalitions.

CLANCY: More now. CNN's Rome Bureau Chief Alessio Vinci tells us about the elections outcome.

(BEGIN VIDEOTAPE)

ALESSIO VINCI, CNN ROME BUREAU CHIEF: With Prodi holding a majority in both the houses of parliament, you would think now that the political drama that has unfolded here in Italy over the last day would come to an end. Well, this is Italy, and exactly the opposite is taking place.

On the one side, we have Romano Prodi, the challenger, the leader of the center left coalition who is declaring that he has won the election and addressing reporters as the next prime minister of Italy. He said that he would govern for all Italians, even for those who did not vote for him.

ROMANO PRODI, ITALIAN OPPOSITION LEADER (through translator): We must be careful, because there is no point passing judgment over a mature democracy, because with the last vote we have decided on the last vote, and the Italians have given their support to the union.

VINCI: But on the other side, Prime Minister Silvio Berlusconi is not conceding defeat. His camp is disputing the election results, pointing out that in the lower house of parliament, Prodi won by a margin of less than 25,000 votes, and because there are some one million ballots that are being currently contested at the local level, the final vote count has not been certified yet by the highest court in the country. And that is why Mr. Berlusconi is not conceding defeat.

Officials close to Berlusconi are telling me that in previous elections, mistakes resulted in hundreds, if not thousands of votes being declared void. But they have never been as decisive as this time around.

Alessio Vinci, CNN, Rome.

(END VIDEOTAPE) CLANCY: We continue to stand by. We're expecting President Ahmadinejad of Iran to make an announcement. It is expected to be about the country's successful enrichment of uranium, something that is upsetting European leaders and the United Nations, that had called on Iran to suspend all of its enrichment activities. We are going to bring you that live when it happens.

Meantime, in other major stories around the world, an explosion during evening prayers in Pakistan's port city of Karachi. The interior minister of the country says at least 40 people were killed, dozens more wounded.

This is the blast scene that you can see here. It was in a public park. Several thousand people were gathered. It was a rally celebrating the Prophet Mohammed's birthday.

Witnesses say the blast ripped through the stage set up by a predominantly Sunni group. After the explosion, people at the rally protested and they confronted police right there on the scene.

GORANI: Well, it was called Spain's 9/11. Two years ago, terrorists blew up commuter trains in Madrid, killing 191 people and injuring more than 1,700 others.

Today, 29 suspects have been indicted for their involvement in the worst terrorist attack on Spanish soil. The charges include terrorist killing, attempted killing and membership of an armed terrorist group. The murder charges carry a sentence of between 20 and 30 years in prison per victim. But if convicted, none will spend more than 40 years behind bars.

Any trial could take months, but as Madrid Bureau Chief Al Goodman reports, it can't come soon enough for the victims and their families.

(BEGIN VIDEOTAPE)

AL GOODMAN, CNN MADRID BUREAU CHIEF (voice over): Atocha station, where the ghastly scene began, captured by security camera. Ten bombs struck four commuter trains just minutes apart during morning rush hour --191 people killed, more than 1,700 wounded.

Jesus Ramirez was knocked unconscious for two weeks by the blast. Months of physical therapy followed. He still hasn't returned to his government job. But the judge's indictments offer a ray of hope.

JESUS RAMIREZ, TRAIN BOMB VICTIM(through translator): Unfortunately, it doesn't end the nightmare. But it's kind of a compensation for all the suffering, knowing that the people who hurt you will be punished.

GOODMAN: Or at least some of them. These seven leading suspects are dead. Police closed in on their hideout three weeks after the attacks and they blew themselves up.

Jorge Rodriguez is a reporter who has written extensively about the bombing investigation.

JORGE RODRIGUEZ, REPORTER (through translator): All of the clues support the premise that this attack was inspired and carried out by Islamic terrorists.

GOODMAN: The police reached that conclusion after gathering fingerprints, DNA evidence and records of phone calls between the suspects. They say the attacks were carefully rehearsed, with the bombers testing security at the stations and on the trains.

Various court documents released before the indictments describe many details of the plot. The explosives were manufactured in Spain for legitimate mining but stolen from this mine in the north.

This house on the outskirts of Madrid was the bomb factory where the terrorists assembled the bombs in backpacks and sports bags. But from examining one unexploded bomb, police learned that timers on cell phones were used to trigger the bombs.

Three days after the attacks, in an historic turnaround, voters ousted the conservative government of Prime Minister Jose Maria Asnar which had taken the unpopular step of putting troops in the U.S.-led coalition in Iraq.

(on camera): And now, after a two-year investigation, come the indictments, paving the way for a trial which is still months away and shedding more light on the deadly attacks here at Atocha and at other stations down the line.

Al Goodman, CNN, Madrid.

(END VIDEOTAPE)

CLANCY: This is a day when legal proceedings on both sides of the Atlantic are drawing people's attention to terrorist attacks. And for a second day, stories of suffering and loss filled a federal courtroom in Virginia in the death penalty trial of admitted terrorist Zacarias Moussaoui.

Kelli Arena has more on the testimony that's going to help a jury to decide if the confessed al Qaeda member lives or dies.

(BEGIN VIDEO TAPE)

UNIDENTIFIED MALE: Oh, please help me.

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): The jury heard gut wrenching 911 calls from people trapped inside the burning World Trade Center.

Melissa Doi was on the 83rd floor of the South Tower, pleading with the operator to send help.

MELISSA DOI: I'm going to die, aren't I?

UNIDENTIFIED 911 OPERATOR: No, no, no, no, no. DOI: I'm going to die.

ARENA: Help never arrived.

Tax lawyer Harry Waizer told jurors how he was riding the elevator up to his office at Cantor Fitzgerald, a financial securities firm, when the first plane struck. Flaming jet fuel burned his face, legs and arms, and damaged his lungs and throat. His story was as horrific as when he told it to the 9/11 Commission.

HARRY WAIZER, 9/11 SURVIVOR: The elevator was ascending when suddenly I felt it rocked by an explosion and then felt it plummeting. Orange streaming sparks were apparent through gaps in the doors at the side of the elevator. As the elevator scraped the walls of the shaft, the elevator biff.

I began to beat at the flames, burning my hands, arms and legs in the process.

ARENA: Cantor Fitzgerald lost 658 staffers on 9/11.

Yesterday, one by one, victim family members cried or fought back tears as they testified in the Zacarias Moussaoui death penalty trial.

Lee Hanson described how his son, Peter, his daughter-in-law and their child Christine died aboard United Airlines Flight 175. Christine, just 2-1/2, was the youngest victim on 9/11. Peter had called his father from the plane. After hearing him whisper, "Oh my god," three times, Lee Hanson watched on television as that plane struck the tower and burst into flames.

Incredibly, seven of the 15 witnesses lost two or more relatives.

Most did not look at Moussaoui, except for one.

Sharif Chowdhury, a Muslim from Bangladesh, glared at Moussaoui after testifying that in Islam, a man is not allowed to kill another innocent man. Chowdhury lost his daughter and his son-in-law.

(on camera): The judge warned prosecutors that too much emotional testimony could be grounds for an appeal, telling them, "You may pay a price for that down the road."

Kelli Arena, CNN, Alexandria, Virginia.

(END VIDEO TAPE)

GORANI: OK. We're still standing by for a speech by the president of Iran, Mahmoud Ahmadinejad, as well on a day where the former president of Iran has made statements about that country's nuclear program.

We bring in our national security correspondent, David Ensor, for more on what to expect today -- David.

DAVID ENSOR, CNN NATIONAL SECURITY CORRESPONDENT: Well, Hala, it looks as if we will be hearing from President Ahmadinejad that -- basically along the same lines as Mr. Rafsanjani offered to a Kuwaiti interviewer just hours ago, and that is that Iran has successfully, using 164 centrifuges that it has in Natanz, just outside the city of Natanz in a facility there that has been much -- much watched by the international community, that Iran has successfully enriched uranium by about 3.5 percent, which would be enough to make the uranium usable for fuel in nuclear processing.

Now, this would be the level that you would need to produce energy, not bomb-grade material. But still, it is a major step along the way for Iran towards its goal that it states is to produce nuclear energy.

And what, of course, the international community and certainly the United States is worried about is that it's also a step along the way towards having eventually bomb-grade uranium that could be used in producing nuclear weapons. So, while this step that we may be about to see in President Ahmadinejad's speech is not unexpected, it certainly will raise a notch or two the level of concern of the international community.

And you will recall that the U.N. Security Council, in a statement, called upon Iran to give up all this sort of activity by the end of April. Clearly, that isn't going to happen based on what we see Mr. Rafsanjani saying and what we think the president will say just shortly from now -- Hala.

GORANI: Now, David Ensor, this is on a week when the head of the IAEA, the U.N.'s nuclear watchdog, is due to go to Iran. It's also, as you said, within the international context of many countries wanting to pressure Iran to abandon this program.

What is the strategy there coming from Iran making these public statements on so many levels that they are going ahead with this nuclear program?

ENSOR: Well, it seems to be full speed ahead, damn the torpedoes kind of approach. You will see there have been statements by various Iranian officials this morning saying when Mr. ElBaradei, the head of the IAEA, arrives in Iran in just a few days' time, he will face a new situation, a situation where Iran is actually enriching uranium to the level where it can be used to produce energy.

So, they seem to be trying to move as quickly as possible towards a program, make it a fact on the ground, so to speak, and force the international community to react to that. And so far, at least in public, they are saying they will ignore the warnings from the U.N. Security Council. So, they are basically calling the bluff of the world, and certainly of the West -- Hala.

GORANI: David Ensor, our national security correspondent.

And as we mentioned a bit earlier, we are still waiting on this speech by the president of Iran, Mahmoud Ahmadinejad, and we'll bring it to you live when it happens -- Jim. CLANCY: We're going to turn our attention now to elsewhere in the Middle East, where one day after a young Palestinian girl was killed by Israeli forces at a Gaza refugee camp, the Israeli military intensifying its offensive against Palestinian rocket fire.

Thousands of Palestinians marched at the funeral of the young girl. Many others were wounded in that strike, members of her family. The shell hit her home.

Israeli military officials apologized for the girl's death, but say military operations are going to continue, so long as Palestinian militants continue to launch their rockets at civilian targets in Israel. Seventeen Palestinians have died in the offensive since Friday.

It is the official end to the Ariel Sharon era in Israeli politics. Three months after suffering a massive stroke, Ariel Sharon has been declared permanently incapacitated. Now, that statement an official one by the Israeli cabinet. Sharon, of course, has been in a coma since a serious stroke in January.

GORANI: In Iraq now, Shiite and Sunni and Kurd politicians are sorting through the difficult task of forming a unity government. Politicians are at odds over who should be prime minister. Sunnis and Kurds are standing their ground against the current leader, Ibrahim al-Jaafari, while the Shiite coalition is standing by him.

Aneesh Raman reports now from Baghdad.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Goodbye, Saddam.

ANEESH RAMAN, CNN CORRESPONDENT (voice over): When Saddam Hussein's regime fell three years ago this week, Ibrahim al-Jaafari was, by many accounts, the country's most popular politician, the most likely to lead Iraq into a new democratic era. But now, just four months after Iraqis voted in their first permanent government, Jaafari is at the center of a political stalemate that is paralyzing Iraq.

At issue is his ability to govern a country embroiled in sectarian strife, a country that after the bombing of the Shia Askaria mosque in late February teeters now on the brink of all-out civil war.

Monday, Kurdish and Sunni politician issued a final rejection of Jaafari, saying the transitional prime minister proved he's not up to the task. But Jaafari shows no indication he's willing to step down, still claiming support from influential Shia cleric Muqtada al-Sadr. Tuesday, the Shia Alliance met again to try and find a way out, but once again emerged with no resolution.

Iraq is in desperate lead of leadership. Insurgent attacks like this one in Falluja on Monday rage on. Shia militias operate at will in some areas, and sectarian tensions are not abated.

South of Baghdad, Shia families continue to flee their homes, taking shelter at this tent city. "We have received more than 300 families," says this Red Crescent official, "and we are ready to receive more."

Sunnis are fleeing, as well. All fearing for their lives.

The power vacuum is undermining U.S.-led efforts to stabilize Iraq, prompting a recent visit by U.S. Secretary of State Condoleezza Rice and persisting calls by her boss for an end to the deadlock.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Forming a unity government is critical to defeating the terrorists and securing the peace.

RAMAN: And the only avenue that will lead to a decrease in U.S. troops anytime this year.

(on camera): A unity government is still what Iraqi politicians are hoping to achieve. It is why this stalemate arose in the first place. But with huge challenges ahead, forming the government will be one thing. Keeping it together for the next four years, quite another.

Aneesh Raman, CNN, Baghdad.

(END VIDEOTAPE)

CLANCY: We're going to take a short break here. We are standing by, when it happens we are going to take you live to Iran. President Mahmoud Ahmadinejad expected to speak shortly.

GORANI: And we're expecting him to make statements on his country's nuclear program. We'll bring you that live after this.

(COMMERCIAL BREAK)

CLANCY: All right. We're going to take you now to a live look at what is under way in Iran. Prayers being read. The national anthem has been sung there in Iran as President Ahmadinejad prepares to address his nation.

GORANI: And this on a day where the former president of Iran has said that his country has enriched uranium successfully, using 164 centrifuges. We are expecting President Mahmoud Ahmadinejad to also, of course, make statements on his country's nuclear ambitions, that controversial nuclear program.

CLANCY: Now, this is being very closely watched, of course, by the International Atomic Energy Agency, the U.N.'s nuclear watchdog group. As a signatory to the nonproliferation treaty, Iran must allow inspections by the IAEA of some of its nuclear facilities. Iran, of course, has been consistently saying that its nuclear program is for nothing more than peaceful purposes, to generate power.

GORANI: As we await that speech from Mahmoud Ahmadinejad, the U.N. Security Council still very firm in its position that Iran must stop all uranium enrichment activities by April 28th. CLANCY: All right. We are going to continue to watch this. We will bring you back live to Tehran when the president takes the podium.

Let's turn now to the United States. And supporters of immigrant rights turns out in huge numbers on Monday. There were rallies held all across the United States.

This, the latest day of demonstrations that demand rejection of a proposed law that would make illegal immigration a felony. The so- called National Day of Action took place in more than 140 cities. The legislation would also tighten border controls and punish those who help illegals. It is currently stalled in Congress.

GORANI: Now, it's estimated that some 11 million illegal immigrants live in the United States. Many of them are unskilled. Some of them uneducated. And that makes it particularly difficult for them to gain legal status.

Tom Foreman has that story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: And I will bear true faith...

UNIDENTIFIED GROUP: And I will bear true faith...

TOM FOREMAN, CNN CORRESPONDENT (voice over): Look at the pictures, hope and inspiration of legalized American citizens...

UNIDENTIFIED GROUP: And justice for all.

FOREMAN: ... and the question about illegal immigrants seems obvious.

(on camera): Why don't people come here legally?

(voice over): And the answer is just as clear to Brent Wilkes, an activist for immigrant rights.

BRENT WILKES, LEAGUE OF UNITED LATIN AMERICAN CITIZENS: Well, they can't play by the rules when the rules are you can't play.

FOREMAN: Well, you can play, but the rules are strict, according to the U.S. Citizenship and Immigration Service. First, through family.

UNIDENTIFIED FEMALE: This is ridiculous.

UNIDENTIFIED MALE: No, no, no. For the green card, I'd do anything.

FOREMAN: As the movie "Green Card" portrays, immediate families of U.S. citizens can come in with relative ease, as long as they prove the relationship is not a fraud.

UNIDENTIFIED MALE: I do.

UNIDENTIFIED FEMALE: I do.

FOREMAN: But bringing in others is difficult and time consuming. If you were from the Philippines and want your grown, married son to join you this year, you should have applied for his legal entry in 1988. Because that weighting list is 18 years.

UNIDENTIFIED MALE: Thank you.

FOREMAN: Immigrant sports stars, celebrities, people with highly specialized skills or advanced education can be brought in by employers, but the less special they are, the harder it gets. People seeking political asylum are legally admitted while their cases are evaluated. So are investors who commit $1 million to build a U.S. business. A half million if it helps a struggling industry.

And finally, there is the diversity lottery. Out of the millions of low-skilled and unskilled laborers who want to move to America every year, 55,000 essentially have their names pulled from a hat. But -- and this is important -- if you are from Mexico or a handful of other countries that already send a lot of immigrants, the State Department has said, your name cannot be in the hat.

Immigration was once much more open. When the nation needed many workers people hopped on a boat overseas hopped off here.

WILKES: That was it. It's nothing like that anymore. It's much more complicated, and it's much harder to come into the country legally. And for that reason, that's why we've got illegal workers.

FOREMAN: Taking the citizenship quiz, saying the oath, those are the easy parts. Getting legally in line for the test, that can be hard.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

CLANCY: We continue to stand by. We're going to be taking you live to Iran, where President Mahmoud Ahmadinejad is preparing to address his nation, and the subject matter is likely to be atomic energy.

GORANI: The question is, after these statements are made, what will the statements be, how will the world react?

That and more after this.

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: And hello, everyone. I'm Tony Harris at the CNN Center in Atlanta.

More of YOUR WORLD TODAY in just a few minutes. First, stories making headlines in the United States. "This case is not going away." That vow today from a North Carolina prosecutor who is looking into rape allegations against members of Duke University's lacrosse team. DNA tests did not link the players to the woman who accuses them of rape.

Just last hour, the district attorney was at a forum at North Carolina Central University. The alleged victim is a student there.

(BEGIN VIDEO CLIP)

MICHAEL NIFONG, DURHAM COUNTY DISTRICT ATTORNEY: It doesn't mean nothing happened. It just means nothing was left behind, which is the case in 75 to 80 percent of all assaults.

(END VIDEO CLIP)

HARRIS: Attorneys for the players say the DNA results prove the men's innocence.

Case dismissed against the New Orleans man roughed up by police. The run-in last October between retired teacher Robert Davis and New Orleans cops was caught, as you can see here on tape.

Davis was charged with public intoxication, resisting arrest and battery. Now he and his lawyers say prosecutors have dropped the case. Davis insisted all along he hadn't had a drink in 25 years.

Three officers still face charges. Two were fired.

Taxpayers are getting hammered by waste and spending on Hurricane Katrina contracts. Government inspectors found federal agencies paid inflated prices for blue tarps to cover damaged roofs. They also overpaid for debris removal and temporary trailers. Inspectors blame poor planning and lax oversight.

A tense day in central and northern California. Heavy rains have returned, and with them, rising flood waters. Many levees are already in danger of collapsing. Rivers have spilled into some neighborhoods. California governor Arnold Schwarzenegger has declared a state of emergency for seven counties. The region saw its rainiest March on record. More rain this April has pushed reservoirs to capacity.

(WEATHER REPORT)

HARRIS: Set aside a few extra quarters for gas this summer. The national average for regular unleaded is predicted to be $2.62 a gallon. The exact price hike will depend on where you live, of course. Some of us could easily see $3 a gallon. A bad summer storm season could send prices even higher.

How do prices compare to last year? Here's a "Fact Check."

(BEGIN VIDEOTAPE)

HARRIS (voice-over): A poll released in the first week of April 2005 found gas prices were causing financial hardship for a majority of Americans. At that time, gas prices had soared about 19 cents in three weeks, with the average price for a gallon at $2.32. The highest average price in the nation one year ago was in Bakersfield, California, at $2.62 a gallon, still lower than our current average. That hike was blamed on lingering high crude oil prices, growing demand and higher refining costs.

Two weeks later, the Lundberg Survey found gas prices had declined by nearly by 4.5 cents, thanks to drop in crude oil prices and slightly lower demand. By the end of April 2005, the average had fallen to $2.27 per gallon. Many motorists are likely hoping history repeats itself at the pumps.

(END VIDEOTAPE)

HARRIS: A big payday for a man who blames Vioxx for his heart attack. The popular painkiller was pulled off the market a year and a half ago after it was linked to heart problems. A jury in New Jersey today ordered Merck to pay $9 million in punitive damages to 77-year- old John McDarby. Merck says it has acted properly, and will appeal.

At the top of the hour, "LIVE FROM" takes you live to the Pentagon. Defense Secretary Donald Rumsfeld and Joint Chiefs of Staff chairman, General Peter Pace, take questions from reporters. That and more coming up. YOUR WORLD TODAY continues now. I'm Tony Harris.

(MARKET REPORT JOINED IN PROGRESS)

CLANCY: Now let's go back live to Tehran and take a look at events going on there. There has been some singing, there have been prayers, and we are awaiting a speech by President Mahmoud Ahmadinejad.

GORANI: On a day where Iran says it will join the nuclear technology club, where the former president of Iran has said that uranium enrichment has taken place in his country. And we are waiting for details on that nuclear program, controversial nuclear program, from the president of Iran himself in a few minutes.

CLANCY: Now, you see the background that has been laid out there by Iranian officials, the doves of peace there. And there is a flag obscured somewhat with the people standing on stage right now. On the flag is the nuclear emblem, if you will, the symbol of an atom. It's interesting, there's a bit of a political competition going on here.

There you see President Ahmadinejad seated there in the front row, in the khaki jacket, almost at the center there of the picture. But his former rival, political rival Akbar Rafsanjani has one-upped him by giving an interview to the Kuwaiti news service Kuna, and revealing, really, the news that the president had hoped to reveal here, Rafsanjani perhaps, taking some of the credit for starting that nuclear program years ago.

GORANI: Now, here's what's significant, as well. On this week, the head of the IAEA, Mohamed ElBaradei is due to go to Iran. Inspectors are in Iran. The IAEA not commenting on this, but the White House saying through reports Iran, with these statements, is moving in the wrong direction, as we await those statements from the president of Iran on his country's nuclear program.

CLANCY: Now the United Nations has been trying to stop Iran from enriching uranium, because that fuel can, of course, eventually be used to produce nuclear weapons. Tehran says its program is only for peaceful purposes.

Let's turn to Hooshang Amirahmadi is in the U.S. state of New Jersey. He's founder and president of the American Iranian Council, the director of the Center for Middle Eastern Studies at Rutgers University.

What are we to make of this announcement? What -- how does it serve the purposes, perhaps, of President Ahmadinejad right now?

HOOSHANG AMIRAHMADI, FOUNDER, AMERICAN IRANIAN COUNCIL: Well, basically, what Iran is trying to say is that it is not a matter of whether we have the technology or not, that we do. That is to say -- they are trying to say, we are already almost North Korea. So deal with us the way. you are dealing with North Korea.

And at the same time, they're going to offer negotiation as a way out. Iran has said, and they will say again today, that Iran is not intent to build nuclear weapons, but it is going to stay with its stride to enrich uranium. I think the way to go with Iran at this point is obviously not use threat of force, or force, but rather, negotiate, dialogue.

I think the Islamic public has made a major turn in its life, the turning point in life, by accepting to sit down with the United States directly and negotiate its problems, including the nuclear issue. I believe the Bush administration must take that offer seriously and negotiate and get the nuclear issue off the table . And I think it is easy to get Iran moved away from building nuclear bombs, toward a more peaceful process involving partnership with the United States.

CLANCY: All right, now, we're looking at a picture right now of a hall. Front and center in the first row, President Ahmadinejad expected to make those comments. The head of the Iranian Atomic Energy Agency is speaking right now. Let's listen for a moment to what he has to say.

UNIDENTIFIED MALE (through translator): Brothers and sisters across the country are witnessing this event through live television. Invite you to send our salutations to the prophet and his holy family. Invite the head of Misara Hoseidei (ph), the head of nuclear program of the Islamic Republic. In the name of God, I would also like to welcome all of you. And in relation to the -- of nuclear program and its relation to the scientific discoveries....

CLANCY: All right. We're continuing to monitor this situation. We are going to be switching out our signal to continue our live satellite coverage. Important comments being made this day, a historic day in Iran. Nevertheless, a day of concern in Europe and the United States, that had been hoping to persuade return to abandon its nuclear enrichment efforts. That is not going to be the case. We're going to listen in here a little bit more, as more details of Iran's nuclear program and what its leadership is frankly saying is its first successful enrichment of uranium.

UNIDENTIFIED MALE: One of the important issues in this regard is the generation of nuclear electricity. In order to develop nuclear power plants on the basis of countries needs, on the basis of the ratifications of the Islamic consulate of assembly the next 20 years, 20,000 of nuclear electricity is scheduled to be generated, and this has been submitted to the Atomic Energy Organization for implementation.

The 1,000 megawatt Busha (ph) power plant is part of this project that was carried out, jointly with Russia, and the progress made in Busha power plant until the end of 1384 Iranian calendar year, is indicative of the physical progress to the extent of 92 percent. Let us hope in 1385 Iranian calendar, there would be a pilot project for generation of electricity there.

In line with the development of the country's nuclear power plants, Iranian experts have started designing a 360-megawatt power plant, and in the current year, two projects for generation of 1,000 megawatts of electricity has been put on international tender.

The country's need for radio isotopes for research and industrial purposes, as well as medical needs, and the supply of such radio isotopes has made the officials of the country -- has created a firm will among the officials of the country in order to set up a new heavy water nuclear power plant, either a reactor, and it will become operational until the end of 1387 Iranian calendar.

There is another major plan for the country's nuclear development, and that is reaching self-efficiency for the production of nuclear fuel. The construction of these power plants have be under provision of the IAEA, and this requires the Islamic Republic to be active in the field of producing nuclear fuel. It is obvious, as far as the production of nuclear fuel is concerned, they are processing uranium or to uranium and enrichment has to be carried out. Islamic public of Iran in all phases of the production of nuclear fuels is carrying out activities. (INAUDIBLE) project that became operational is indicative of Iran's activities for the exploitation of uranium for national resources.

And also, the Saban (ph) project in Yaes (ph) and the existing facilities at the factory there, has extracted uranium, and transferred them to Adakan (ph) in Yaes province, converting it into yellow cake.

What is going on in this Saban, under the title of UCF Project is a conversion of yellow cake to UF-6. That is uranium oxide. They'll produce UF-6, and this factory would be the father for enrichment at Natans. So, what is going on in Natans is completion of a uranium- enrichment unit for the production of nuclear fuel for units that make use of low-enriched uranium.

It's a great honor for me to announce that 110 tons of UF-6 have been produced in these installations. The Islamic Republic of Iran right now is considered as ranked eighth among world countries, with respect to countries that are in position of these facilities. The project for the production of heavy water is one of -- requires one of the most complicated technologies of the day, and the limited number of countries are able to have such a capacity, and the initial steps have been taken for making this project operational, and the process for reserving this heavy water has begun, and 16 tons of heavy water can be produced on an annual basis. And also Natans enrichment project.

This project, which is a sensitive phase for the production of nuclear fuel, has been carried out for producing -- has been rather designed for producing nuclear fuel for power plants. And this is a very sensitive technology, and there is a need for making use of prominent experts in different phases, in the field of design, the structure, and the manufacturing of different parts and equipment, and making it operational.

This is a very sensitive project. We have made efforts in order to make use of our countries state of the art technology. The uranium enrichment technology encompasses different basic sciences and engineering sciences, and only a few number of countries have access to such a technology. The importance of gaining access to such a technology can contribute to scientific progress in different scientific and industrial fields.

With the help of God almighty, we have managed to stabilize this science, which means just stepping beyond the science. This has been accomplished with the help and with the efforts made by Iranian experts, and this is 3.5 percent enrichment. And we are treading the path of having industrial production. And efforts has been made so as to make operational a new project.

This success, nuclear success, is owed to proper decisions, and decisive decisions adopted by the senior officials of the Islamic republic in lifting the suspension of the enrichment process, and indicated that resistance in the face of the illegitimate demands of others and also having self-confidence and self-reliance can help us gain access to the climax of the nuclear science.

I deem it necessary to express my appreciation...

GORANI: Live from Tehran, the head of Iran's nuclear agency detailing Iran's successful uranium enrichment program, calling it a nuclear success, saying that this is due to the lifting of the suspension of enrichment of uranium, and resisting, what he called, illegitimate demands of others to stop the nuclear program in Iran, as we await statements as well from the president of Iran, Mahmoud Ahmadinejad. There's been reaction from the White House. Elaine Quijano joins us now live with more on that -- Elaine.

ELAINE QUIJANO, CNN CORRESPONDENT: Hello to you, Hala.

Just a short time ago, as Air Force One touched down here in Missouri, the White House Press Secretary Scott McClellan speaking to reporters about the situation with Iran, saying that the statements further underscore the White House's concerns about the Iranian regime's nuclear ambitions. McClellan going on to say that the regime should be renewing confidence instead of moving in the wrong direction, and also adding that Iran's statements only further isolate it from the rest of the world.

McClellan speaking here in Missouri. Actually that statement coming from Scott McClellan, as the president is getting ready to speak at an even on Medicare. We'll watch to see if perhaps President Bush may incorporate some of this message in his comments. But Scott McClellan, the White House spokesman, saying that the international community is concerned, because of the Iranian regime's history of history of hiding nuclear capabilities under the cover of a civilian program -- Hala.

GORANI: Did Scott McClellan say anything about what steps might be taken by the United States at this point?

QUIJANO: Well, McClellan eventually saying that the Iranian regime of course has now 30 days to come clean. This is in response to a question about sanctions. If in fact Iran does not move in the right direction, in the administration's view, the White House will continue to talk to other countries about what those next steps should be -- Hala.

GORANI: All right, Elaine Quijano, reporting to us live there from Missouri with statements from the White House press secretary, Scott McClellan, following statements made not only by the Iran president, not only by the -- Iran's nuclear agency head, but also by the former president Of Iran, saying that Iran has now successfully enriched uranium for the first time and is joining the club of nuclear countries.

We're going to take you back now to Tehran with more live statements there from the head of Iran's nuclear agency. Let's listen in.

UNIDENTIFIED MALE (through translator): Now let's begin a symbolic move for donating the container holding the first yellow cake produced at the nuclear facilities of the Islamic Republic, for keeping it at Osana Bozarazavy (ph), the holy place.

And this is a symbol of support that is of renewal of the allegiance with the late founder of the Islamic Republic. This is renewing allegiance with the president and the supreme leader.

This is the slogan of (SPEAKING IN ARABIC), meaning God is great.

CLANCY: We're looking, however you measure it, at a historic day in Iran. And I want to bring back in the founder and president of the American Iranian Council, if I can, with us, Hooshang Amirahmadi. And this is a nuclear program that's been a long time coming.

The Shah of Iran started this, and it was the United States -- it was familiar names, like Dick Cheney, who's now the vice president, Donald Rumsfeld and Paul Wolfowitz -- all involved, all in support of the Shah developing nuclear weapons -- not nuclear weapons -- or they're going to -- have a fuel reprocessing plant, I believe it was, as well as an enrichment facility.

HOOSHANG AMIRAHMADI, FOUNDER, AMERICAN IRANIAN COUNCIL: Yes. The problem is that since then, a lot has changed in Iran. There has been a revolution and the new regime that has been hostile toward the U.S., and the U.S. that is hostile to that regime. A lot of demonization on both sides.

It is only unfortunate that this has happened. Iran and the U.S. are natural allies. They have tremendous common interests in the region, but over the last 26 years, both sides, I believe, have mismanaged this relationship tremendously, and we have gotten to a point where we are now looking for either peace or war between the two.

It is only unfortunate that we should be thinking increasingly towards war. But I think peace is the way to go. I think, what we need to do is open up Iran to dialogue, to engagement, and to make sure that situation doesn't go further in the wrong direction, as the President Bush has said.

And the way to prevent that is not toward war, I believe, it is toward peace, reconciliation, and I think the Iranian government at this point is sending every possible signal to make itself ready for a direct talk with the United States.

I think the Bush administration must take that offer, and I think the Israelis must support that gesture, and make sure, as in the past, that this dialogue takes place, and that the situation between the two countries increasingly normalize, as opposed going into, again, more tension and conflict.

CLANCY: Mr. Amirahmadi, though, there is a troubling question, and that is that Iran's nuclear processing, its enrichment program, wasn't announced by Iran, and it was not something that is -- an earlier speaker there that we were listening to, asserted that it's been all under the careful, watchful eyes of the IAEA. That's simply not true, is it?

AMIRAHMADI: No, that is not true. Obviously, Iran did conceal a good amount of what it was doing, but here is the problem. And that's another consequence of this counterproductive sanction policies that the U.S. imposed on Iran for the last 20-some years.

The fact is that the Islamic Republic, to avoid the sanctions, it went underground and began doing what it did in the nuclear side, you know, behind the scenes and off the eyes of the IAEA, and so they are not ...

CLANCY: Well, on another front, if you look at how Iran has been very sensitive about this nuclear program, after the '79 revolution in Iran, the French refused to give them enriched uranium, and what was the reaction of the Iranian regime then? They took hostages, French hostages.

They went after them, because they wanted to get back their investment in an energy company, a French energy company, and they couldn't get that back. Has the regime really changed? Do you see a sea change in how Iran is really dealing with its problems that would say it's time to trust them? AMIRAHMADI: Yes, I think so. I think over the last 20-some years, the regime has significantly changed. First and foremost, Iranian society has changed significantly, forcing the regime to rethink its ideology and its policies that the Iranians are not for war, they are not for sanctions. They don't want this conflict between the U.S. and Iran continue.

They are for negotiation. They are for peace. They are for reconciliation, and I think that is well understood now at the very highest level of the country. Remember, this right wing now that controls the country, for years has opposed any negotiation, direct or indirect, with United States of America. But now that same very group ...

CLANCY: But some would say they have been forced. Some would say they have been forced into that position.

AMIRAHMADI: It is also true.

CLANCY: And when I talk to my Iranian -- when I talk to Iranians, some of my sources, they say that everybody in Iran is absolutely convinced that their government is working to build the bomb. What's more, they say they support that.

AMIRAHMADI: Well, I don't think that Iranians really support Iran building bomb. This is overplayed, honestly. I have spoken to many Iranians every day.

CLANCY: By the Iranian? The people themselves?

AMIRAHMADI: No, I don't think the Iranian people support across the board what the nuclear policy of the Islamic Republic is, particularly if it was to go toward building a bomb, and endangering the safety of the country and the national security of the nation. They will not support that.

But they do support Iran having nuclear technology for peaceful enrichment, a peaceful purpose. And that is quite different from talking about the Iranian people supporting Iran building bombs. Iranians are now, at this point, are looking forward to a better life. Their economy is in shambles, democracy doesn't exist, human rights is being abused. So Iranians are looking for some -- for a better life, as opposed to nuclear bombs. That doesn't say that.

CLANCY: Well, it is a historic day for them. I want to thank you for being with us, Hooshang Amirahmadi. We're going to have to take a break here.

I bid farewell to our viewers in the United States. For our viewers around the world, we will be back right after this.

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