Nation building is our central task, both in Afghanistan and in Iraq. And states, nations can't just be built with military power. Despite all difficulties, it's very inspiring to see how the Kurds, the Arab Sunnis and the Shiites are coming together here, how they're jointly defining the basis on which their state is to be built, the political course this state will pursue and who is to receive which cabinet positions.

I consider the modernization of the Middle East the central challenge of our time. This region behaves as if it were disturbed, if you'll excuse the clinical expression.

Today we're seeing fundamental conflicts within political Islam, with the fundamentalists on the one side and the moderates on the other. Who gains the upper hand means a great deal to the world.

It is important that the Iraqi people have confidence in the election results and that the voting process, including the process for vote counting, is free and fair.

Iran is undertaking a massive effort to expand its influence in southern Iraq. At the same time, that influence decreases the more the political process in Iraq progresses.

Besides, many Islamic movements will change as soon as they gain political responsibility. I'm not at all pessimistic in this regard. Just think of Turkey, where the Islamists are now behaving like a sort of Christian Democratic party in Europe.

Americans have eliminated Iran's worst enemies, the Taliban in Afghanistan and Saddam [Hussein]. I occasionally threatened my Iranian counterpart in Kabul that one day I would send him a big bill for what we did. But, seriously, Iran is pursuing a dual strategy in Iraq. On the one hand, the Iranians, after decades of hostility, are now interested in good relations. On the other hand, they want to keep the country weak and dominate the region.