Iran's president speaks amid hopes of 'speedy and safe' end to crisis

Iran's firebrand president Mahmoud Ahmadinejad is today set to speak on the fate of the captured 15 British sailors and marines amid signs that they could be freed soon.

Hopes were growing that the Navy personnel seized by Iran may be released after Downing Street unexpectedly issued a statement on the crisis last night, highlighting attempts to achieve an "early resolution" to the crisis through direct talks.

Home Secretary John Reid spoke of his desire for a "speedy, swift and safe" resolution of the crisis and suggested Iran had made a fresh diplomatic move. He also referred to the involvement of Iran's chief negotiator Dr Ali Larijani.

Mr Reid told GMTV: "What everyone wants obviously is a speedy and safe resolution of this diplomatically.

"Contact has been made by Dr Larijani and that is a good thing. Hopefully, this can be achieved bilaterally to get a speedy, swift and safe resolution.

"I can't put a time limit on this. As the Prime Minister has already said, the days ahead are important ones. The key thing here is that contact has been made."

However, all eyes will today be on Iran's hardline president who is due to give his first full response to the seizure of the British crews.

With his confrontational reputation, diplomats may be wary of strong language which could be interpreted as a setback following progress in recent days towards ending the stand-off.

Iranian state TV said: "The president will explain Iran's view on the British forces' illegal entry into Iranian waters and the British government's policy regarding the issue."

The president's press conference was cancelled at short notice yesterday, suggesting Iran was seeking time to pursue diplomatic avenues.

Mr Ahmadinejad had branded Britain "selfish and arrogant" at the start of the dispute and groups close to him have called for the sailors to be put on trial.

Iranian state TV said: "The president will explain Iran's view on the British forces' illegal entry into Iranian waters and the British government's policy regarding the issue."

The president's press conference was cancelled at short notice yesterday, suggesting Iran was seeking time to pursue diplomatic avenues.

Mr Ahmadinejad had branded Britain "selfish and arrogant" at the start of the dispute and groups close to him have called for the sailors to be put on trial.

However, Dr Larijani, secretary-general of Iran's Supreme National Security Council, has sought to play down the likelihoodof such legal action.

Crucially, the Government has now made direct contact with Dr Larijani a day after he appeared on Channel 4 News stressing that the row could be resolved through diplomatic talks.

Just hours after Foreign Secretary Margaret Beckett warned against expecting a swift end to the dispute, Downing Street's statement last night appeared more hopeful after the further talks including between Iran's ambassador to London, Rasoul Movahedian, and Foreign Minister Lord Triesman.

"On the basis of these, the Prime Minister believes that both sides share a desire for an early resolution of this issue through direct talks" a spokesman for No 10 said.

"The UK has proposed direct bilateral discussions and awaits an Iranian response on when these can begin."

Tony Blair yesterday emphasised the diplomatic route after earlier threatening "tougher action" if this was not successful. The speaker of the Iranian Parliament today welcomed Britain's "change of tone" in solving the dispute.