Inside Iran

Thirty years into the Islamic Revolution, there are voices for change---its youth--  its women. But, remember, the Islamic Republic is a limited democracy. 

The ultimate head of state is the supreme leader: Grand Ayatollah Ali Khamenei.  He has the final say on what change will take place in Iran - from its nuclear program to its social policies.

Ann Curry: Many people feel no matter who's elected it won't matter, because this is a country that ultimately is run by the Supreme Leader, the Ayatollah Khomeni.  Does the Supreme Leader want change?

Hooman Majd: It's very hard, 'cause nobody gets to speak to the Supreme Leader-- from-- in the media.  (laugh) He doesn't give press conferences.  He doesn't give interviews. I believe he wants some change, is my personal belief. And I think some of the change is internal that he wants to see.  He does not want to see women in bikinis. But he's not going to s-- stop some of the social progress that w-- will have to happen in Iran.  It just will have to happen.

On foreign policy, too, the supreme leader has signaled he is open to change. In March, he replied to President Obama's videotaped message to Iran with a predictable condemnation of the United States, but for the first time he said: "You change and we'll change too."

This past week, speaking in the Middle East, President Obama again said he is open-minded about Iran, even on the sensitive topic of nuclear technology.

President Obama: Any nation - including Iran - should have the right to access peaceful nuclear power if it complies with its responsibilities under the nuclear Non-Proliferation Treaty.

The Obama administration is pushing for direct talks to secure guarantees that Iran will not pursue nuclear weapons.

Former President Mohammad Khatami: I really respect the American nation.

Former President Mohammad Khatami believes that relations can improve.

Former President Mohammad Khatami: So we do require a major change.  And the Americans have the key role and the leverage to change this approach.

And Iranians should also revise-- their approach toward the American policies.

Slideshow   Inside Iran NBC’s Ann Curry shares photographs from NBC’s reporting inside this secretive and surprising nation. more photos

Ann Curry: You're saying you believe that there is a possibility of dialogue between Iran and the United States?  President Obama has said he's extending his hand.  Will Iran unclench its fist?

Former President Mohammad Khatami: There should be negotiation with no precondition at all.  Just to get to a compromise.  A proper solution for both countries.  That's what we really seek. 

But there are serious obstacles to a deal. Iran is developing sophisticated missiles capable of hitting Israel and parts of Europe. Another obstacle is President Ahmadinejad himself: his rhetoric sows mistrust and, some fear, could provoke military action from Israel. Many in Iran are aware of the damage that's been done.

Former President Mohammad Khatami: I strongly believe that we should not-- talk like that to irritate the other people and motivate them. These words should be stopped.

And to set the record straight--we ask the former president about some of the most damaging words of all.

Ann Curry: Many people in America and people throughout the world have been offended by President Ahmadinejad's questioning about whether the Holocaust ever happened.  You are a respected Iranian leader. Will you acknowledge that the Holocaust occurred?

Former President Mohammad Khatami: Clearly I have stated that Holocaust was a great disaster, a human disaster. It was a huge crime against humanity.

Statements like that could help heal wounds abroad.  But again, the main challenge is how Iran can make peace with itself. Zahra Rahnavard is the wife of presidential candidate Ahmadinejad fears most--Mir Hossein Mousavi. She is the first woman in Iran to hit the campaign trail for her husband.

Ann Curry: Sixty-five percent of your population is under the age of 30.   Two thirds of your students in your universities are women.

Zahra Rahnavard: Uh-huh.

Ann Curry: Is Iran on the brink of a change that it cannot stop?

Zahra Rahnavard: Absolutely.  Iran is at a point where there's going to be major changes, crucial changes. 

It is a sentiment shared by many in Iran, including filmmaker Tahmineh Milani, who even after being threatened and jailed, is optimistic about the country's future.

Tahmineh Milani: For me, future is bright.  Maybe we-- we have a short time, you know, dark-- period in our society.  But everything is going to better.

Ann Curry: So, change is coming, it's just a matter of time.

Tahmineh Milani: Yes, of course. 

As voters head to the polls this week, the eyes of the world will be on Iran to see if that change is coming sooner or later.

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