UN Urges Iran, EU to Keep Talking

"I believe that the best way to break the impasse is to continue the discussions" between Iran and the EU-3 (Germany, France and Britain), the UN chief said after a luncheon with Japan's UN envoy Kenzo Oshima, the president of the UN Security Council for August.

Annan spoke with reporters after Iran broke UN seals at a plant where bomb-grade uranium could be produced, defying Western nations, which fear Tehran wants to produce weapons rather than nuclear energy, as Iran insists.

"I have indications from both sides that they are prepared to continue the search for a solution," the UN head said. "I hope that all sides will desist from any action that will lead to further escalation and continue the process at the (negotiating) table."

Annan reiterated he had spoken by telephone recently with Iran's new president, Mahmoud Ahmadinejad, urging him to show restraint and continue his dialogue with the European trio.

Security Council threat

The United States and three European powers directly involved in negotiations with Iran have threatened to ask the board of governors of the UN nuclear watchdog agency in Vienna, the International Atomic Energy Agency (IAEA), to refer the matter to the UN Security Council in New York for possible sanctions if Tehran does not back down.

But China's UN ambassador Wang Guangya said it would not be helpful to haul Iran before the Security Council.

"We all want a peaceful solution to the Iranian issue. So I think the best place is the efforts between the EU and (the) Iranians or the IAEA," Wang said.

Draft resolution

The IAEA considers on Thursday the EU call for a halt to Iran's nuclear activities. The 35-nation board of the atomic watchdog agency is set to meet Thursday at 3:00 pm (1300 GMT) to consider a resolution put forward by the three EU negotiators calling on Iran to stop the sensitive nuclear fuel work, a spokesman said.

The EU's draft resolution, which is opposed by non-aligned states on the agency's board, "urges Iran to re-establish full suspension of all enrichment-related activities including the production of feed material, including through tests of production at the Uranium Conversion Facility" in Isfahan (photo), according to a copy of the text obtained by the AFP news agency.

A diplomat close to the IAEA said non-aligned nations "do not want a resolution on Iran," fearing this could isolate Tehran and trigger a backlash.

The diplomat said Europe as well as the United States want to see the resolution adopted and for another IAEA board meeting to be held in early September to haul Iran before the Security Council for possible sanctions if it is still making nuclear fuel.

The draft resolution calls for IAEA director general Mohamed ElBaradei (photo) "to provide a comprehensive report on the implementation of Iran's NPT (non-proliferation treaty) safeguards agreement" by September 3, in a filing that would set the stage for a board meeting.

EU diplomats expressed confidence the draft would be adopted by the IAEA's board Thursday.