Inside Iran

Iran's presidential campaign is in full swing. Virtually overnight, posters appear everywhere.  Top politicians are urging voters to come to the polls in record numbers.

Ali Akbar Hashemi Rafsanjani: Here in Iran - as in the U.S. - the economy is what many voters care about most.

It's why President Mahmoud Ahmadinejad was elected four years ago, says Iranian-American author Hooman Majd.

Hooman Majd: They voted for him because he was a populist who promised to bring them better economic times. And if they vote for him again this time, it'll be the same thing. 

The average wage is about 400 dollars a month-- just enough to get by. Unemployment and inflation are soaring. This shopowner says prices have doubled since President Ahmadinejad took office. A woman who says she didn't vote at all in the last election, says she now feels compelled to vote against Ahmadinejad. The incumbent president is concentrating his efforts on his base - rural and working class voters, who he says have been helped by his economic policies. His opposition is restricted to a narrow field approved by a council of religious leaders

His main rival is Mir Hossein Mousavi - who was prime minister in the early days of the revolution.  This week Ahmadinejad and Mousavi squared off in Iran's first televised presidential debates, where Mousavi called Ahmadinejad a dictator. Crowds are turning out for Mousavi, as at this rally in Tehran,especially younger voters.

Ann Curry: The polls show that Mousavi has a serious chance of beating President Ahmadinejad. But as in the U.S. elections, voter turnout and the youth vote will decide who wins.

Many of the young here say they're eager for change.

Man: I have no freedom, no freedom of speech.  And so I'm trying-- I'm trying to change my destiny by voting. 

Man #2: Mr. Mousavi is-- is green to us.  He represents hope to us. 

By speaking with us, some say they risk retribution from the government.

Man: I'm taking a risk.

Ann Curry: Why are you taking that risk?

Man: I want to see the-- I want to-- the world to see my country.  We are-- you-- you know, we are human; we are not terrorists. 

Man #3: Iranian people are-- good people.  And-- we have a good nation.  And-- I am proud of being Iranian.

All this excitement at this rally and the candidate himself isn't even here.  He's at a rally in another city. Instead, the keynote speaker is his mentor - none other than a former president of Iran --Mohammad Khatami. In a rare interview, Khatami says Mousavi understands the concerns of Iran's youth.

Ann Curry: The youth account for 65 percent of Iran's population and yet they're very unhappy, as you now head to your presidential elections, about restrictions on their freedoms.

Former President Mohammad Khatami: There are some restrictions and limitations.  They have to be removed, these limitations.  And the future administration, one of its first priorities should be promoting the citizenship rights, human rights, and the freedom of the people.

Khatami is also critical of President Ahmadinejad's combative approach to foreign policy.

Former President Mohammad Khatami: These are some words that would justify the policies of other countries to put pressure over Iran.  And these words should be stopped.

Ann Curry: Are you saying that Mr. Mousavi would be better for U.S. relations with Iran than President Ahmadinejad? 

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Former President Mohammad Khatami: I believe-- Mr. Mousavi is a very wise diplomat. He never wants tension with his administration and other countries.  And we never intend to have enemies around the world.

Despite their differences, there is at least one key issue that both sides agree on: Iran's nuclear program, which they insist is for non-military purposes only. Though the nuclear program has prompted international sanctions against Iran, it is a source of national pride.  President Ahmadinejad recently teared up on Iranian television at a ceremony celebrating new uranium enrichment facilities. While in Iran, we ask the president for an interview.  He declined.  But we are invited to attend a press conference with him in Tehran.

Ann Curry: Mr. President, thank you for this opportunity to speak to you. The head of the U.S. Joint Chiefs of Staff said quote, We believe it is one to three years that Iran will be capable of having a nuclear weapon. Whatever the intent of your nuclear program, are your scientists advancing so fast that Iran could be capable of building a nuclear weapon soon?

President Mahmoud Ahmadinejad:  (smiles) The Iran nuclear issue is very clear, in the context of our legal rights we will continue with our program.

We are principally opposed to the production and proliferation of nuclear weapons. We feel that this is a disservice if you will to humanity.

No matter who wins the election, the nuclear issue is sure to dominate Iran's relations with the U.S. And the question remains: can anything be done to ease tensions that have mounted between the two countries over the past three decades.

Ann Curry to former President Khatami: You're saying you believe that there is a possibility of dialogue between Iran and the United States?

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