One translation of what he said that time was that "the Zionist regime will dissapear from the pages of time". He may or may not be right about that but he has a right to say it. Israels supportors hype what he says so they have an excuse to attack.
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Details of secret talks for Israeli unity government revealed (Haaretz)
from the article: Diplomats walk out as Ahmadinejad rails against Israel in UN