EU3 aim to give Iran nuclear proposals by Saturday

LONDON - Britain, France and Germany aim to hand over new proposals to Iran tomorrow (NZT) for economic and political cooperation meant to persuade Iran to abandon all activities which might be used to make a nuclear bomb.

The three countries are also planning to call a meeting of the International Atomic Energy Agency (IAEA) -- the UN's nuclear watchdog -- early next week to warn Iran against restarting sensitive nuclear work, diplomats said.

Iran, which says it is losing patience with EU negotiators, repeatedly threatened this week to resume uranium processing, a move that would end two years of talks and could lead to its referral to the UN Security Council for possible sanctions.

European diplomats said Britain, France and Germany -- the EU3 -- aimed to hand over their proposals, two days earlier than they had previously said, despite it being the weekly Muslim holiday.

"It does look as if there may well be a handover of the package tomorrow," one EU diplomat said.

There was no immediate comment from Iran, though a senior Iranian negotiator repeated earlier that Iran planned to resume uranium conversion work at its Isfahan nuclear facility.

Conversion, which Iran agreed to suspend along with other sensitive nuclear activities under a November deal with the EU3, is the step before enrichment, which can purify uranium to the levels needed to fuel nuclear reactors or bombs.

Iran says it aims only to generate electricity and has a right to a peaceful nuclear programme.

The EU3 is hoping to persuade Iran, which the US accuses of seeking nuclear bombs, to give up all nuclear technologies which could have either civilian or military uses.

Diplomats gave no details of the new proposals. The EU has been working for several months on comprehensive proposals for nuclear, economic and political cooperation.

Last weekend Iran tried to speed up the delivery of the proposals but the EU3 said it would deliver them by August 7.

Iran may choose to see the early delivery as a gesture of goodwill as new President Mahmoud Ahmadinejad takes power but one EU diplomat said it did not represent a backing down by the EU. He cited logistical reasons.

One EU diplomat said Iran might not respond to the new proposals before a planned meeting next week of the IAEA.

Earlier, senior Iranian nuclear negotiator Hossein Mousavian told state television Iran planned to resume conversion work at its Isfahan plant under the supervision of IAEA inspectors.

But though Iran had threatened to restart this week it appears to have put off any start-up for a few more days.

"In the next one or two days the IAEA inspectors will arrive in Isfahan," Mousavian said. "Under their supervision the seals will be removed and Isfahan plant will resume its activities."

But Mousavian, who is part of a negotiating team which analysts expect to be replaced in coming days by Ahmadinejad, also struck a conciliatory tone.

"We are ready to show any kind of flexibility to reassure the world about the peaceful nature of our (nuclear) fuel cycle but we will never abandon our legitimate right," he said.

Under the Non-Proliferation Treaty, which Iran has signed, it would in theory be allowed to enrich uranium if it could prove it was for peaceful purposes only -- the reason why it has been working under the supervision of the IAEA.

But the EU3 say the only way to prove peaceful intentions is not to enrich at all and renounce all sensitive technologies.

Diplomats said the EU3 were also calling for a meeting of the IAEA governing board tentatively set for Tuesday to reinforce that message.

"This board meeting is just to warn the Iranians," a diplomat close to negotiations between Iran and the EU3 said.

The EU was not aiming at this meeting to refer Iran to the UN Security Council, but rather to caution Iran before it was able to restart conversion work.

"We want to have a resolution before they can take off the seals. It has nothing to do with the Security Council," he said.

It was unclear whether an early resumption by Iran would prompt the Europeans to reconsider the need for an immediate referral to the UN Security Council.

A US State Department official said his understanding was that the EU3 would call the IAEA meeting only if Iran broke the seals, or was clearly about to.

"Obviously, if they continue to maintain their adherence to the agreement and they don't break the seals, then there isn't necessarily a need for it," the official said. "What would then happen is that then -- as everybody anticipated -- the EU3 would move forward with diplomacy."

An IAEA spokeswoman declined to comment.

- REUTERS