The trial of the radical preacher Abu Hamza al-Masri watched a videotaped speech by the cleric today in which he told his followers "to bleed the enemy" as part of the struggle to set up a global Islamic state.

The two-hour long video, recorded at a private meeting in Whitechapel, East London, in late 1997 or early 1998 showed Abu Hamza speaking and answering questions from behind a small table under a banner which read "Al Jihad" next to the words Palestine, Bosnia, Kashmir, Egypt and Afghanistan.

Addressing the meeting in English, Abu Hamza told his supporters that the fight to establish a global Khilafah - Islamic state - would be a "long bloody way" and divided into three phases. The first, he said, was known as "the needle of bleeding the enemy".

"We ask Muslims to do that, to be capable to do that, to be capable to bleed the enemies of Allah anywhere, by any means," he said. "You can’t do it by nuclear weapon, you do it by the kitchen knife, no other solution. You cannot do it by chemical weapons, you have to do it by mice poison."

"Imagine you have only one small knife... you have to stab him here and there until he bleeds to death, until he dies," the video showed Abu Hamza saying.

Abu Hamza, on trial for soliciting murder and inciting racial hatred, then outlined the second phase of the struggle - when the enemy is "bleeding" and "just about to fall".

In the third period, once Islamic rule was in place, Abu Hamza said Muslims should concentrate on setting up a "buffer zone" against non-believers, which then becomes a "control zone."

According to Abu Hamza's speech, such a fight should continue, "so on and so forth, until you see the Khilafah sitting in the White House ruling from there".

The Old Bailey jury also heard the former imam of the Finsbury Park Mosque give his views on democracy, life in the "toilet" of Britain and descriptions of targets worthy of attacks by Islamic militants. Today's video was the first of nine recorded speeches by Abu Hamza that will be played during the trial.

In answers to questions on the video, Abu Hamza said western democracies were in "freefall" because they had given too much personal freedom to their citizens: "It is falling down, it is crumbling now," he said.

"The society is crumbling because of democracy - because it gives freedoms to the silly people who do not know how to use freedoms and they end up destroying themselves, their family, their country, their morals, their even humanity."

Abu Hamza, now 47, also condoned a wide range of targets for attacks by Islamist sympathisers. He said that brothels, courts and banks that charge interest all deserved to be attacked by "the victorious party", the group of Muslims he envisaged leading global jihad.

"Every place of iniquity, every brothel, every video shop which is selling naked, for the victorious party is a target," he said. "If anybody protect these kufr (infidel) places and these fisq (sinful) places is a target. Anybody who propagate these kind of thing among Muslims is a target.This is the truth."

Abu Hamza, of West London, is charged with nine separate counts of soliciting to murder, four counts of using threatening, abusive or insulting words or behaviour intended to stir up racial and two counts of possessing materials useful to terrorists. He denies the charges.

The trial continues.

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