Ahmadinejad: 'Muslims do not hate Americans'

>> to an nbc news exclusive. andrea mitchell was granted an exclusive interview today with iranian president mahmoud ahmadinejad inside the presidential palace in tehran. they talked about a number of things, including the fate of the american hikers and the plan to build that islamic center in downtown manhattan . andr andrea, good evening.

>> reporter: good evening, brian. iran 's president personally intervened to get sarah shourd released because of her medical problems. but when it came to the tough questions, tough details of subjects like the two other american hikers still in jail, and the international criticism today of iran's nuclear program , well, then he was defiant. iran 's president mahmoud ahmadinejad wanted americans to know that sarah shourd had been released on compassionate grounds but the fate of shane bauer and josh fattal --

>> i think we should let the judge decide about the case. i think this is the greatest help to all of them.

>> reporter: iran 's government has been encouraging protests all week, trying to exploit anger against the u.s. because of threats to burn the koran. and the opposition to the proposed islamic cultural center . in our interview, president ahmadinejad seized the anti-muslim tension as a zionist conspiracy in america.

>> translator: i should say there is no conflict between the two countries. we should find where the problem is. i ask this question -- do the people of the united states hate the muslims? is that so? that's not true. muslims do not hate americans, either. this is nothing to do with the people here. that has nothing to do with cultures. we believe that there is a minority in a united states , and they are zionists . they have no religion. they believe in no religion and they have no culture. they are always thinking for their material interests. they are against all religions. against all divine books. against all divine prophets. their interest lies in hostility with nations of the world , and the hostility -- their interests lie in creating wars and conflicts.

>> reporter: he suggested that so-called zionists are stopping president obama from improving relations with iran .

>> translator: maybe president obama wants to do something. but there are pressures -- pressure grouches ps in the united states who do not allow him to do something. even if he wants to do something, there are certain groups that don't allow him.

>> reporter: you're suggesting that president obama doesn't have -- doesn't have the -- as commander in chief and leader of the united states does not have the decision making power over what he does?

>> translator: do you really think president obama can do anything he wishes, too? he does not say so even. there are different political groups and more important, there are zionists there. we say if he wants to do something, there are certain groups who do not allow him to do so.

>> reporter: president ahmadinejad rejected today's demands by the u.n. watch dog nuclear agency to let inspectors back in. he said he would not let that happen, but senior u.s. officials tell me that if he continues to defy the u.n. on this, that could lead to a major confrontation with the