This is a partial transcript from On the Record with Greta Van Susteren, April 2, 2004 that has been edited for clarity.

Watch On the Record every weeknight at 10 p.m. ET!

GRETA VAN SUSTEREN, HOST:  Tonight, the U.S. has imposed sanctions on 13 companies and individuals from seven countries for supplying Iran (search) with tools to build nuclear, chemical, and biological weapons.

I asked the late Shah of Iran's widow, Empress Farah Pahlavi (search), what she makes of Iran today.

(BEGIN VIDEOTAPE)

FARAH PAHLAVI, EMPRESS OF IRAN:  When I think back on days yesterday, Iran was one of the cradle of civilization.  It was a country developing, going forward, friendly with the West as well as the Eastern Block (search) then, land of peace and stability with our neighbors.

And look what's happened in the last 25 years. I mean, unfortunately, it has become the center of international terrorism and religious fanaticism.

VAN SUSTEREN:  Do you believe Iran is sponsoring terrorism against other nations?

PAHLAVI:  Well, I'm sure.  I'm sure this is what they are doing, they have done from the beginning.

But what I want to say today is that the majority of Iranian people after the late so-called election have said by not -- by boycotting the elections that they don't accept the government, the Islamic republic is not legitimate anymore.

They don't have any messages to deliver anymore, and they want change.  They want freedom, they want democracy, and they want a secular government because the Iranian people have tasted this regime.

Iranians are Muslim, they will remain Muslim, but they have an identity, they have an Iranian identity, and I'm sure with the support of the world and especially the Iranian people, if Iran changes -- and it will -- it will have an effect not only for the Middle East but for the rest of the world.

VAN SUSTEREN:  But how do you expect it's going to change?  Last summer, there were demonstrations by students who wanted more of a voice, who wanted more of a democracy, and that was quickly shut down.  So why do you think that Iran is going to change?

PAHLAVI:  It has to change for the sake of Iranians, for the sake of the Middle East, and for the sake of the rest of the world.  This is a repressive autocratic regime.  They will want to stay as long as they can and as much as they will oppress people.

There are so many students in jail tortured women, returning to the Middle Ages, stoned and flogged, and so many intellectuals and so many newspaper people in jail, but I'm sure, with the will of the Iranian people, especially the young people who are -- 70 percent of our population is below 30 years of age -- who want progress, modernity, and freedom...

VAN SUSTEREN:  But how does it actually happen?  I mean people may want it.  You'd like to see it happen to Iran.  The young people might want it.  But I mean when is this likely going to happen, and how does it happen?

PAHLAVI:  I think that part of the world has to support this voice of freedom of Iranian people and then to put pressure on the Islamic government, and those who cared so much 25 years ago for human rights in Iran -- what happened to them in the last 25 years?  I want the world to write about the atrocities which is happening in Iran in every way, and I'm sure, with the will of the Iranian people, they will arrive.  It has to.

VAN SUSTEREN:  What is your thought about the war in Iraq led by the United States?

PAHLAVI:  Well, I really sincerely doesn't wish the same fate that the Iranians have, another Islamic republic.  The Iraqi people have suffered for years under Saddam Hussein.  We don't want them to suffer another 30 years under a form of theocracy, and I hope that really, with the help of the rest of the world and especially the Iraqi people, Iraq will keep its territorial integrity and will gain its popular sovereignty.

VAN SUSTEREN:  What's your bet, though?  June 30, we're going to turn over the sovereignty to the Iraqi people.  What's your bet is going to happen in Iraq?

PAHLAVI:  Well, I don't want to predict anything and...

VAN SUSTEREN:  Well, what do you think?

PAHLAVI:  Well, it has to be -- I am a positive person, and I will fight with...

VAN SUSTEREN:  But are you -- but, I mean, being a realistic person, what do you think is going to happen?

PAHLAVI:  It has to be positive.

VAN SUSTEREN:  Nice to see you, your highness.

PAHLAVI:  Thank you, Greta.

(END VIDEOTAPE)

VAN SUSTEREN:  And be sure to check out her highness's new book, "An Enduring Love: My Life With the Shah." (search)  It's a great book.  You can get it on amazon.com or at the bookstore.

Content and Programming Copyright 2004 Fox News Network, L.L.C. ALL RIGHTS RESERVED. Transcription Copyright 2004 eMediaMillWorks, Inc. (f/k/a Federal Document Clearing House, Inc.), which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon Fox News Network, L.L.C.'s and eMediaMillWorks, Inc.'s copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.