Iran Says U.S. Must Change Policy Not Just Tactics

`When they say `we want to make changes`, change can happen in two ways`, Mahmoud Ahmadinejad said.

The new U.S. administration needs to show a "fundamental" change in policy not just tactics, Iran's president said on Wednesday after U.S. President Barack Obama offered to extend a hand of peace to the Islamic Republic.

Obama in his first formal interview said his offer required Iran to "unclench its fist".

"When they say 'we want to make changes', change can happen in two ways. First is a fundamental and effective change... The second ... is a change of tactics," Mahmoud Ahmadinejad told a rally in western Iran broadcast live on state television.

"It is very clear that, if the meaning of change is the second one, this will soon be revealed," he said.