Watchdog to show Iran atom progress

Vienna: The United Nations was expected to cite Iranian advances in its atomic programme yesterday as US warships staged manoeuvres off Iran's coast highlighting American concern over Iran's nuclear ambitions and Iraq.

An International Atomic Energy Agency (IAEA) report was expected to show Iran had significantly expanded its programme, exposing it to broader sanctions. But there are signs of discord between Western powers and the IAEA on how to handle Tehran.

Major powers stand behind UN Security Council resolutions demanding Iran suspend all nuclear fuel work in exchange for negotiations on trade incentives, with the threat of escalating sanctions if Tehran keeps refusing.

French President Nicolas Sarkozy said Iran must decide if it wants to cooperate with the international community or face new sanctions. "I for my part think one should not hesitate to toughen the sanctions," Sarkozy told the German monthly Cicero.

Iran, which says its nuclear research is directed purely towards power generation and denies any nuclear arms ambitions, said it would resist any threat from the United States.

"Islamic Iran will... give a powerful answer to enemies and oppressors," Defence Minister Mostafa Mohammad Najjar said, according to the official Irna news agency.

The US has said it is committed to a diplomatic solution but would not rule out use of armed force. Diplomatic efforts, however, are proving laborious and relations with the IAEA have been strained by recent comments by its head.

US and major European envoys plan to visit IAEA head Mohammad Al Baradei to complain about his suggestion to let Iran retain some uranium enrichment activity.

'A fact'

"We believe they pretty much have the knowledge about how to enrich (uranium)," Al Baradei told the New York Times. "From now, it's simply a question of perfecting that knowledge. People will not like to hear it, but that's a fact."

"Al Baradei's point is that Iran's administration cannot afford [politically] to back down from their current state of 'achievement' - but they can be asked to stop where they are," a diplomat close to the IAEA said yesterday.

"If Iran stops expanding its enrichment capability now, it's no threat. Why keep this dance going until they achieve industrial level enrichment? That's Al Baradei's argument," he said.

As a 60-day grace period set by the Security Council on March 24 for Iran to back down was running out, Tehran vowed not to freeze its quest for atomic energy before, during or even as an outcome of negotiations.