ZAHEDAN, Sistan-Baluchestan Prov -- President Mohammad Khatami said here Saturday that the 'unequal and extensive' war on Iraq has had no winner but losers, advising the U.S. and UK to get out of Iraq quickly and permit the establishment of a broad-based and democratic government there.

President Khatami told a large group of people in the city of Saravan that both the regime of Saddam and the invading U.S. and British forces were defeated in the operations, IRNA reported.

"The first loser of the war was the dictatorial and belligerent regime of Saddam, who ruled the noble and oppressed Iraqi nation for about a quarter of a century and inflicted heavy damages on Iraqi people and regional nations," said Khatami. He said, "The next losers in the war were the invading forces."

He added that the forces were defeated first of all in the world public opinion and then morally.

President Khatami said the world, including Islamic countries, and many governments and policymakers condemned the military invasion as is evidenced by the anti-war demonstrations which are still going on worldwide.

He said the invading forces also suffered moral defeat for massacre of women, children and men as well as ruining vital resources of the Iraqi nation.

Khatami called for the establishment of a democratic and popular system in Iraq by Iraqi people themselves with the support of the world people, including states of the region.

He said regional states should maintain solidarity and not allow any country to interfere in affairs of the region and Iraq. He added that regional states should prepare the ground for establishment of a democratic system and a government in Iraq, which is at peace with its neighbors.

He expressed hope that the UN, which has been insulted, would act more forcefully through the world public opinion's strong support and prepare the ground for Iraqi nation to decide their own fate.

President Khatami said military occupation of Iraq was a mistake, despite the discontent of Iraqi nation and all free Muslim nations of the region with Saddam's regime.

He said yet the bigger problem on the part of invading forces would be to impose a non-Iraqi and foreign regime on the Iraqi nation.

"American nation should not allow a group with wrong policies and dangerous tactics exploit their facilities in their own favor," said the president.

He expressed hope that American people would make their rulers come into their senses and force them to abandon their policies as they did to prevent the terrible Vietnam War.

"American nation should know that present policies of their policymakers would initially and in the long-run not be in their favor," he said. Khatami said, "It is not yet late for the U.S. and Britain; they can get out of Iraq quickly and make up for their mistakes and blunders to some extent by preparing the ground for establishment of a popular government in the country."

The president said the world is mostly in need of peace, security and war is harmful to peace and security.

President Khatami touched on crimes of the Iraqi regime against Iraqi and Iranian nation given its weapons of mass destruction and with the support of big powers, saying celebrations were held worldwide, including Iran, for the regime's downfall.

Concluding his speech, President Khatami recalled Iranian officials' duty to safeguard the Islamic Republic system and establish a religious democratic system.