Mexican President Felipe Calderon Sunday called on all parties to solve disputes through dialogue during his speech to the nation in the National Palace instead of Congress.

Calderon failed to make his first state-of-the-nation report in Congress, as Mexican presidents traditionally do, due to lingering anger over last year's controversial election.

The lawmakers had vowed to prevent him from making the speech in Congress, but agreed to let him turn in his report at Congress' podium Saturday.

Mexico's Federal Electoral Tribunal declared Calderon the winner of the July 2006 election nearly a year ago, after two months of massive street protests led by leftist candidate Andres Manuel Lopez Obrador, who claimed that Calderon's narrow electoral victory was fraudulent.

During Sunday's speech, Calderon said he is guiding the principals of his presidency: guaranteeing the rule of law, developing a competitive economy, promoting social development, creating an effective democracy and following a responsible foreign policy.
 
He urged the legislators to back reforms of Mexico's public finances, electoral system and energy laws to deal with the nation's rapidly declining oil reserves.

During his speech, around 300 demonstrators gathered outside the palace trying to block the way of Calderon's guests to his speech.

The protestors, most of whom are followers of Lopez Obrador, chanted slogans against Calderon's fiscal reform.

Frictions between security officers and the protesters were reported, but no one was hurt.

(Xinhua News Agency September 3, 2007)