Crisis Looms Over Iran
Stefania Bianchi

BRUSSELS, Aug 8 (IPS) - An international crisis looms this week after Iran rejected a package of incentives offered by the European Union in return for abandoning its nuclear programme.

The proposals from the European Union (EU) led by Britain, France and Germany and backed by the United States have not been made public but are said to offer recognition of Iran's right to produce nuclear power for civilian purposes, as well improved trade relations with the EU, and guarantees of alternative nuclear fuel sources from Europe and Russia.

In return, the Europeans reportedly insist that Tehran should permanently give up nuclear enrichment and construction of a heavy-water reactor, which could be used to make a bomb.

Iranian foreign ministry spokesman Hamid Reza Asefi has described the proposals as unacceptable.

"The European proposals are unacceptable to the Islamic Republic of Iran, they provide no guarantees for Iran's interests and are contrary to the (nuclear) Non-Proliferation Treaty and the Paris agreement," he said Saturday.

"The proposals are unacceptable because Iran's right to enrich uranium is not included," he added.

Iran meanwhile announced Monday that it has resumed work at its nuclear enrichment plant.

Tehran threatened last week to resume nuclear activities at the uranium conversion plant that have been suspended since a November 2004 deal with the EU under which Iran agreed to suspend uranium enrichment and conversion for the duration of talks with the bloc.

The "EU3" -- Britain, France and Germany -- who are heading EU nuclear negotiations with Iran will now lobby countries on the United Nations nuclear watchdog's governing board in Vienna Tuesday (Aug. 9).

They want the International Atomic Energy Agency (IAEA) to throw its weight behind a warning to Iran not to restart sensitive nuclear fuel work, and have said that if Iran breaks the suspension they will end talks and seek to have Tehran referred to the UN Security Council, which can impose sanctions.

But Iran has accepted that the IAEA can keep an eye on the programme. "They need to install additional surveillance cameras and the work will resume once these have been installed," Asefi said.

IAEA inspectors are due to install the surveillance equipment and oversee the removal of seals at the plant this week.

Iran insists that its nuclear programme is peaceful, but Western countries suspect it is a front hiding efforts to build atomic bombs.

The EU and the United States have been trying to find a compromise solution over Iran's nuclear plans for two years. While, the United States favours a more forceful approach, the EU has been negotiating with Iranian leaders.

Washington has tried to have Iran referred to the Security Council for violating its obligations under the global pact against the spread of nuclear weapons.

Its efforts were, however, blocked by other countries including the European trio, which wanted to persuade Iran to voluntarily give up all potentially weapons-related technology.

The Iranian announcement Monday could bring the negotiating process of the past two years to an abrupt end. (END/2005)