Madrid  - Bolivian President Evo Morales on Monday defended his country's right to have relations with Iran as he was beginning his first visit to Spain as head of state.

"We have the right to have relations with everyone, without submission," Morales told an economic forum before meeting King Juan Carlos and visiting parliament later in the day.

He mentioned the examples of Iran, with which Bolivia has stepped up relations, Venezuelan President Hugo Chavez and former Cuban leader Fidel Castro,

Morales also urged foreign companies present in Bolivia to respect the country's legislation, acting as "partners and not bosses" when participating in exploiting the country's natural resources.

Some companies had been found to be "conspiring against my government" and to be financing the opposition because they did not want an indigenous person to be president, he charged.

Morales was due to discuss the upcoming nationalization of Bolivia's electricity sector, in which several Spanish companies have stakes, when meeting Prime Minister Jose Luis Rodriguez Zapatero on Tuesday.

Before beginning his official visit, Morales presided over a rally of some 7,000 Bolivians in Leganes near Madrid on Sunday, pledging to fight for the legalization of undocumented Bolivian immigrants in Spain.

"When Spaniards and Europeans arrived in America, our grandparents never said they were illegal," he told an ecstatic crowd.

Only 98,000 of Spain's estimated 250,000 Bolivians are legally in the country.

Morales also slammed Colombia for giving the United States access to military bases on its territory. "Where there is a US military base, there are military coups," he said.

The rally was seen as having a strong electoral flavour, as Bolivians resident in Spain are allowed to vote in the December 6 presidential and legislative elections.

Morales' visit followed that of Venezuelan President Hugo Chavez to Madrid on Friday. (dpa)