Ahmadinejad made the remarks in defense of Esfandiar Rahim Mashai, Iran's vice president for tourism, who raised a furor among Iranian lawmakers and clerics when he said Iran was a friend of the Israeli people, The New York Times reported Friday.

"We have no problem with people and nations," he said during a news conference Thursday. "Of course, we do not recognize a government or a nation for the Zionist regime."

An analyst told the Times he thought Ahmadinejad's support for Mashai's remarks signaled Iran might be moderating its position on Israel.

"It looks like the remarks are a policy," said Saeed Leylaz, a political analyst in Tehran. "Despite the opposition, they were repeated, no apology was made and the president supported it (Thursday)."

In mid-July, Mashai was quoted as saying Iran was "a friend of Israeli people" and repeated that sentiment in August, the Times said.

Ahmadinejad supported Mashai's comments, arguing that the tourism vice president's comments reflected "the position of the government."

Ahmadinejad also used the news conference to restate Iran's decision to refuse to suspend uranium enrichment.