UN body demands Iran halt nuclear moves

VIENNA - The governing board of the United Nations nuclear watchdog has unanimously called on Iran to halt sensitive atomic work it resumed this week in defiance of the West.

However, Tehran rejected the demand as unacceptable and illegal.

The resolution adopted by the International Atomic Energy Agency's (IAEA) board of governors said Iran must resume full suspension of all nuclear fuel related activities and asked the agency to verify Tehran's compliance.

Iran, which has denied Western accusations that its atomic programme is a front for covert bomb-making, resumed work at its uranium conversion plant in Isfahan on Monday.

"The resolution on Iran was just adopted without a vote by consensus, full consensus. All 35 members of the board agreed the language of the resolution text," IAEA spokeswoman Melissa Fleming said.

United States President George W Bush said the decision of the UN nuclear watchdog was "a positive first step".

He said the US strategy was to work with the EU-3, "so that the Iranians hear a common voice speaking to them about their nuclear weapons ambitions".

The IAEA's resolution did not say Iran should be referred to the UN Security Council, which has the power to impose sanctions.

EU diplomats said if Iran did not comply they would ask the board to refer the matter to the Security Council in September.

The resolution "urges Iran to re-establish full suspension of all enrichment related activities ... and to permit the Director General to reinstate the seals that have been removed at (Isfahan)".

Iran rejected the resolution as unacceptable. Iran says it needs to develop nuclear power as an alternative energy source to meet booming electricity demand and keep its oil and gas reserves for export.

"We do not accept this resolution and will not execute it. There are serious legal problems with this resolution and ... we are not obligated to implement it," Mohammad Saeedi, deputy head of Iran's Atomic Energy Organisation, told state television.

"There is no doubt that the uranium conversion facility in Isfahan will continue operating, and we will continue relations with the agency and we will welcome inspections."

The head of Iran's delegation to the meeting, Sirus Naseri, said: "Iran will be a nuclear fuel producer and supplier within a decade."

Britain's ambassador to the IAEA, Peter Jenkins, said it would be hard to resume talks if Tehran continued to process uranium at Isfahan.

"If Iran continues to operate this plant in Isfahan then it will be extremely difficult for us to resume this process of negotiations," Jenkins told BBC radio.

Uranium conversion is the first step in process of creating enriched uranium, which can fuel nuclear power plants or, when very highly enriched, nuclear weapons.

- REUTERS