Iran and EU take more time for nuclear deal

GENEVA - The European Union and Iran have agreed a two-month breathing space for a deal on the Iranian nuclear programme, deferring any immediate referral of Tehran to the United Nations Security Council.

In what were billed as make-or-break talks, the EU appeared to have won a commitment from Iranian negotiators that Tehran would continue the temporary suspension of nuclear activities agreed between the two sides last November.

In return, the foreign ministers of Britain, France and Germany promised to provide Iran with detailed proposals by the end of July on how the EU would keep its side of that bargain, which is supposed to lead to a final deal.

"The EU has offered to give Iran a detailed proposal... We believe we could reach a final agreement within a reasonably short time," said Iran's chief negotiator Hassan Rohani.

But Rohani warned that the terms of Wednesday's pact still had to be approved by the government in Tehran, which has repeatedly declared it is preparing to resume some nuclear work.

Iran says its nuclear programme is purely for generating electricity, and British Foreign Minister Jack Straw said that Rohani had given a fresh undertaking that Tehran had no intention of developing nuclear weapons.

But the United States says Iran is using the programme as a cover to develop atomic weapons. It wants Tehran referred to the UN Security Council for possible sanctions if it does not agree to give up the programme.

"What that does is ensure that Iran continues with its suspension of processing of nuclear materials," said Straw when asked to summarise the essence of the agreement reached.

German Foreign Minister Joschka Fischer told Germany's ZDF television he was pleased no side left the table. "However, to bridge the differing positions will be everything other than easy," he said.

But the Iranians were equally firm that they had extracted concessions from the Europeans, saying it was the first time the so-called EU3 had committed itself to detailing a final accord, including economic and technological incentives.

"This was important to us because all along one of our concerns has been that negotiations would be prolonged unduly," Rohani told journalists.

Washington reacted cautiously, reaffirming its support for the EU3 effort, but reiterating its suspicion of Iran's motives.

"Iran hid its nuclear activity from the international community for two decades. That is why we are sceptical about their activities," said White House spokesman Scott McClellan.

The United States has not said whether it will lift its veto on Iran opening entry negotiations with the Geneva-based World Trade Organisation (WTO) when the issue again comes up for a decision again on Thursday.

Iran says it has the right to produce nuclear energy and is impatient with what it sees as EU and US efforts to stand in its way.

"We will remain committed to all our promises and at the same time we want all the rights applicable to countries members of the Non-Proliferation Treaty (NPT)," Rohani said.

The treaty bars states other than the five recognised nuclear powers -- the United States, Russia, France, Britain and China -- from developing a nuclear arsenal, while allowing them to develop nuclear energy for peaceful purposes.

Before the talks, Iran insisted it would go ahead with converting small amounts of uranium to gas at a central plant, although it did not say when. This is the first step to enriching uranium which can then be used for power or weapons.

Diplomats said the EU3 had achieved what appeared to be one of its main objectives going into the talks -- to push any decisions beyond presidential elections in Iran set for June 17.

Aides to top candidate Akbar Hashemi Rafsanjani portray him as an experienced deal maker capable of resolving the standoff.

- REUTERS