Iran Won't be Intimidated, New President Says

Parisa Hafezi, Reuters:

Iran's new President Mahmoud Ahmadinejad said on Saturday the Islamic Republic, facing intense pressure from the West over its nuclear ambitions, would not be intimidated.

Taking the oath of office in parliament following his stunning June election win, the former Tehran mayor said his priority would be to tackle unemployment and his foreign policy would seek to reduce international threats. READ MORE

"We are logical and respect international rules, but will not give in to those who want to violate our rights," he said in a brief address. "The Iranian nation cannot be intimidated."

The European Union on Friday offered Iran a package of incentives to scrap nuclear fuel work while saying it would be sent to the U.N. Security Council if it did not.

Iran, which denies U.S. accusations that its nuclear energy programme is a smokescreen for making atomic bombs, said on Saturday the EU proposal was unacceptable. It says it will remove U.N. seals on some nuclear equipment this week.

Ahmadinejad, 48, who replaced reformist cleric Mohammad Khatami, is a religious conservative who diplomats expect will adopt a tougher approach in the nuclear negotiations.

However, in spite of the heightened tension surrounding the issue, he made no direct reference to it during his speech.

"Seeking justice, peace and the removal of threats are three main elements of our foreign policy," he said.

The former Revolutionary Guard, who upset political veteran and former President Akbar Hashemi Rafsanjani to win June's election, swore his oath of office on the Koran before embracing Judiciary Chief Ayatollah Mahmoud Hashemi-Shahroudi.

MONOPOLY ON POWER

His arrival in office brings to a close Khatami's largely unsuccessful eight-year experiment in reforms. Religious conservatives now enjoy a monpoly on power, dominating parliament and controlling key bodies such as the armed forces, judiciary and broadcast media.

The president in Iran appoints ministers who manage the day-to-day business of government. However, the government's power is checked by several of unelected bodies answerable to Supreme Leader Ayatollah Ali Khamenei, the most powerful figure in Iran who is appointed for life.

Elected with strong support among the devout poor who feel Iran's massive oil wealth has passed them by, Ahmadinejad devoted most of his speech to the need to tackle poverty.

"People's main concerns are unemployment, welfare and the gap between income and expenditure," he said, but gave no details of policies he would adopt.

Deeply loyal to the values of the 1979 Islamic revolution, Ahmadinejad has been plagued by rumours about his past activities since his election win.

The United States says he was a leader in the student movement behind the storming of its embassy in Tehran after the revolution and is trying to determine whether he was a hostage-taker himself, which he and those who took part deny.

Ahmadinejad also faces massive economic challenges in a country where growth is slipping and oilfields, the country's lifeblood, are losing capacity.

His victory has unsettled the investment community. He has vowed to clean out corruption in the oil industry and give preference in investment deals to local over foreign firms.

Analysts say investors should take a "wait and see" approach, arguing that Ahmadinejad took a pragmatic line as mayor of Tehran and could well do so again as president.

Ahmadinejad has two weeks to nominate his cabinet ministers to parliament for approval.

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