U.N. tensions swell amid controversy

South African President Jacob Zuma addresses the United Nations on Thursday.NEW: Iran's president blasts U.S. at U.N. General AssemblyNEW: The U.S. representative called the speech "abhorrent anti-Semitic slurs and despicable conspiracy theories"NEW: The UK Prime Minister said the Arab Spring reflects "massive opportunity" NEW: Turkey's Prime Minister blasts Israel at General Assembly

United Nations (CNN) -- In a meandering address that assigned American blame to issues ranging from the trans-Atlantic slave trade to the global financial crisis, Iranian President Mahmoud Ahmadinejad blasted U.S. foreign policy Thursday in a speech that prompted several delegates to walk out.

The Iranian leader told the U.N. General Assembly that the U.S. government views Zionism as "sacred," and that their European counterparts use the Holocaust as an excuse to pay ransom to Zionists.

Mark Kornblau, a spokesman for the United States Mission to the United Nations, said "Mr. Ahmadinejad had a chance to address his own people's aspirations for freedom and dignity, but instead he again turned to abhorrent anti-Semitic slurs and despicable conspiracy theories."

The speech prompted American, French, British and other delegates to walk out. And though controversial, it did not directly address the group's prime topic of the week: A Palestinian U.N. bid for statehood.

In prepared remarks, British Prime Minister David Cameron fired back, saying the Iranian president "didn't remind us" that Iran represses freedom of speech and violently puts down demonstrations.

The address comes just one day after Iran released two long-imprisoned American hikers, detained near the Iranian-Iraqi border on suspicion of espionage.

Cameron also called recent uprisings in the Middle East -- known as the Arab Spring -- a "massive opportunity" to enact broader diplomatic reforms.

Turning to Libya, he asked for continued support for the country's transitional government after rebel fighters last month all but ousted Libyan strongman Moammar Gadhafi after more than four decades in power.

He also said Britain supports Palestinian desires for "a viable state of their own," but echoed his U.S. counterpart, President Barack Obama, in saying a mere U.N. resolution couldn't solve the broader conflict.

In a sign that seemed to signal an unwillingness to immediately recognize the Palestinians' bid for statehood, Cameron said Israeli and Palestinian leaders must "sit down and talk to each other." "Our role must be to support this."

Peace negotiations broke down last year.

Demonstrators, meanwhile, gathered outside the U.N. headquarters where the Iranian president spoke, marking the seventh time Ahmadinejad has traveled to New York since he took office in 2005.

The Iranian leader on Wednesday called his country "a new model for life to the world" and warned that United States might be willing to "hijack" the recent uprisings in the Middle East.

He also gave an interview to New York Times op-ed columnist Nicholas Kristof in which he discussed the dispute over his country's nuclear activities.

The Iranian leader said that if the United States gives Iran 20%-enriched uranium, "we will cease the domestic enrichment of uranium of up to 20% this very week. We only want the 20% enrichment for our domestic consumption. If they give it to us according to international law, according to IAEA laws, without preconditions, we will cease domestic enrichment."

The IAEA -- International Atomic Energy Agency -- is the U.N. entity that monitors nuclear activity in the world.

Many nations, including the United States, accuse Iran of trying to create a nuclear weapons program, but Tehran insists its activities are peaceful, aimed only at domestic energy use.

Turkish Prime Minister Recep Tayyip Erdogan also addressed the assembly Thursday, asking for greater cooperation in combating Somali piracy and civil war, pressing for resolutions in Syria and in the Balkans, and describing Israeli settlements and the blockade of Gaza as illegal.

The Turkish leader then blamed the Israeli government for obstructing peace efforts and ignoring past resolutions, and he called on the United Nations to help "end this human tragedy."

His comments were likely closely monitored in Jerusalem as Turkish-Israeli relations have hit an all-time low after Erdogan expelled the Israeli ambassador when he refuse to apologize for an Israeli commando raid that left nine Turkish activists dead after the group made their way to the blockaded Gaza Strip -- a move Israel says was illegal.

The United States has vowed to block the Palestinian application for statehood should it come up in the Security Council, but also has been engaged in a diplomatic push meant to head off a scenario that would lead to an American veto.

In a move likely to bring criticism from across the Arab world, U.S. President Barack Obama on Wednesday issued a sharp rebuke to those pressing for full Palestinian membership.

"Peace will not come through statements and resolutions at the U.N.," Obama said, addressing delegates at the General Assembly. "If it were that easy, it would have been accomplished by now."

Israel has described the bid as counterproductive to the peace process, and has called for a resumption of talks to begin in New York and to be continued in Ramallah and Jerusalem.

On Wednesday, Palestinian Authority President Mahmoud Abbas met with Obama as part of the whirlwind of diplomatic

wrangling that has accompanied the controversial proposal.

The American president, while supporting the Palestinian leader's call for statehood, reiterated a long-standing U.S. position on the need for a two-state solution, meaning Israel must be part of any action, officials said.

Abbas is expected to submit the formal request for full U.N. membership by Friday.

But with the timetable for a statehood bid narrowing, delegates at the U.N. General Assembly seemed to add to the tension Thursday by marking the 10th anniversary of a controversial summit in Durban, South Africa that singled out Israel for criticism.

The summit, called to address the legacy of discrimination and its modern-day manifestations, equated Zionism with racism, prompting walk-outs from American and Israeli leaders in 2001.

"We are all aware that the original Durban conference and its follow-up two years ago caused immense controversy," said U.N. Secretary-General Ban Ki-moon. "We should condemn anyone who uses this platform to subvert that effort with inflammatory rhetoric, baseless assertions and hateful speech."

Addressing the General Assembly, South African President Jacob Zuma said the specter of racism and "the legacy of all these ills are still visible."

He asked for a memorial to be created in honor of those affected by the trans-Atlantic slave trade, noting that some reparations had already been paid to affected countries.

Later on Thursday, Bahrain's King Hamad bin Isa Al Khalifa called on Israel to return to its 1967 boundaries, which would afford Palestinians the Gaza strip, East Jerusalem and the West Bank.

He also reiterated support of Libya's new leadership, largely focusing on issues of international diplomacy while violence and controversy over parliamentary seats -- vacated by opposition members -- swirled at home.

Last week, tens of thousands marched and chanted anti-regime slogans during the funeral procession of a man killed southwest of the capital, Manama.

But Al Khalifa noted a need for reforms "aimed to provide decent living conditions, security and tranquillity in a society of peaceful coexistence."

Also on Thursday, Ivory Coast's new president, Alassane Ouattara, made his first appearance at the General Assembly's podium, thanking all "those who had faith in our democracy."

The Western African nation had been engulfed in violence since November, when then-president Laurent Gbagbo refused to step down after he lost the presidential election.

Many months of fighting and widespread displacement ensued, until Gbagbo finally surrendered in April and Ouattara took office in May with the country still wracked by conflict.

"International peace and security continue to be a major concern for our people," Ouattara told the assembly.

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