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Major powers warn Iran of possible new sanctions


LONDON - World powers warned Iran on Wednesday a third round of UN sanctions loomed if it did not halt its uranium enrichment work, which the West suspects could be used to build nuclear weapons.

Earlier, Iran underlined its determination to press on with the work when Ali Akbar Velayati, international affairs adviser to Supreme Leader Ayatollah Ali Khamenei, said Tehran was capable of mass producing machines used for enriching uranium.

"One day Iran had problems to produce one centrifuge but right now we have obtained the technology for mass production of centrifuges," Velayati told the Jomohouri Eslami newspaper.

It was believed to be the first time a senior aide of Khamenei, who has the final say on nuclear and other policies, has said it could make centrifuges on a large scale.

The sanctions warning followed a meeting in London of senior officials from the five permanent members of the UN Security Council -- the United States, Britain, France, China and Russia -- plus Germany.

A British Foreign Office statement said the political directors from the six major powers had concluded a negotiated solution was still preferable but that further action would taken if necessary to get Iran to comply.

"There was strong agreement on the way ahead, reflecting our shared concerns about Iran's non-compliance with (the UN nuclear watchdog) and Security Council requirements and our common interest in a negotiated solution," said the statement.

"All agreed that if Iran failed to meet international requirements the Security Council would need to take further action," it said.

Iran says its nuclear program is only for electricity so it can export more of its oil and gas.

The United Nations has already imposed two sets of sanctions on the Islamic Republic since December over its refusal to halt uranium enrichment, which can be used to fuel power stations or make bombs.

Iranian vow

Iranian President Mahmoud Ahmadinejad, while suggesting his country in general favored negotiations, said Tehran would not retreat "one iota" from what it saw as its right to develop a civilian nuclear energy industry.

"The world should know that ... Iran is among those countries who have the industrial (nuclear) fuel cycle," he told a cheering crowd in the central province of Kerman.

Iran said last month it could make nuclear fuel on an industrial scale, a move that would take it closer to developing atomic weapons if it wanted to. Western experts expressed doubt about the announcement.

Tehran aims to have 3,000 centrifuges running at its main enrichment plant Natanz by the end of this month. That could be enough to refine uranium for one bomb within a year.

Centrifuges, tubular devices that are tricky to calibrate, spin at supersonic speed to refine fuel for power plants or, if it is enriched to high levels, nuclear explosives.

Diplomats and analysts say Iran has not shown the ability to run centrifuges for long periods without breakdown, the key to producing nuclear fuel, and say it is at least 3-8 years away from making enough enriched uranium for a bomb, if it wants one.

In London, the major powers reiterated strong support for continued dialogue between EU foreign policy chief Javier Solana and Iran's nuclear negotiator Ali Larijani.

The major powers were "trying quite intently to open up a channel on the nuclear issue" through Solana, who was expected to meet Larijani again next week, US Undersecretary of State Nicholas Burns said on Wednesday.

They have repeatedly offered Iran economic, civil nuclear and security incentives if it suspends enrichment.

"All of us are a little bit puzzled that the Iranians have not taken a single offer of negotiations over the last 18 months," Burns said.

"Iran is very much in isolation ... Wouldn't it want to consider that negotiation and diplomacy is the best way forward?"

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Major powers to discuss sanctions against Iran
BERLIN (Reuters) - Major powers meet on Wednesday to discuss imposing tougher UN sanctions against Iran unless it halts uranium enrichment work the West suspects is part of a secret program to build nuclear weapons.

The United Nations has already imposed limited sanctions after Iran rejected resolutions ordering it to freeze the work. Iran says its nuclear program is purely for electricity to benefit its economy, particularly to export more oil and gas.

Political directors from the five permanent UN Security Council members -- the United States, Britain, France, Russia and China -- plus Germany will discuss Iran on the sidelines of a Group of Eight (G8) meeting in Berlin.

"Among other things, they will discuss possible language for a new UN Security Council resolution on Iran," a diplomat from one of the six powers said on condition of anonymity.

China would participate in the meeting via telephone, diplomats said.

US Under Secretary of State Nicholas Burns will represent the United States at the talks where delegates will discuss a recent meeting between European Union foreign policy chief Javier Solana and Iranian nuclear negotiator Ali Larijani.

Solana said earlier this week his talks with Larijani were very difficult as Iran had said it had no intention of suspending uranium enrichment.

Possible sanctions

Among possible future sanctions was an increase in the number of Iranian banks to be blacklisted by the United Nations, diplomats said.

Political directors from the G8 group of leading industrialized nations would also discuss Iran to prepare for next month's G8 summit, said diplomats from the group.

One senior official from a G8 country said the current draft of a statement on nuclear non-proliferation to be approved at the summit in Heiligendamm, Germany called for increasing pressure on Iran if it remained defiant.

Under the draft, the G8 would "support adopting further measures should Iran refuse to comply with its obligations," said the official, declining to be named.

Germany is the current G8 president. The other members are the United States, Russia, Britain, France, Italy, Canada and Japan.

Several diplomats said the major powers were satisfied with the impact sanctions against Iran were having and that Iranians were growing increasingly worried about the economic impact they were having.

"Even the Americans expressed pleasant surprise in this regard, especially since they were initially very skeptical about what they thought was an overly watered-down resolution," said the G8 official.

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IAEA report: Iran expands atomic work, defying UN


VIENNA (Reuters) - Iran has not only ignored a UN Security Council deadline to stop uranium enrichment activity but expanded it, according to a confidential International Atomic Energy Agency report obtained by Reuters on Wednesday.

Iran's defiance of another 60-day deadline set by the Council when it imposed a second set of sanctions on March 24 will expose Tehran to tougher penalties over its nuclear work, which the West fears is a front for assembling atom bombs.

"Iran has not suspended its enrichment-related activities. Iran has continued with the operation of their pilot fuel enrichment plant and with construction of their (planned industrial underground) enrichment plant," the UN nuclear watchdog said in its report.

"It has started feeding cascades with UF6 (uranium gas). Iran has also continued with its heavy water-related projects."

But it said the amount of uranium gas fed into the cascade was far below the 80-90 percent suitable to detonate an atom bomb.

Concern about Iran's intentions remain high as it is still evading IAEA investigations into the murky origins and procurement activities of the atomic program and unexplained indications of military involvement, UN officials aid.

"Although no commercial amounts of enriched uranium are being produced yet, it is clear their program is advancing," one official said.

"Unless Iran addresses long-outstanding verification issues, and implements ... required transparency measures, the Agency will not be able to fully reconstruct the history of Iran's nuclear program and provide assurances about the absence of undeclared nuclear material and activities in Iran or about the exclusively peaceful nature of that program," the report said.