Bush, Merkel agree on more sanctions on Iran

Crawford, Texas: German Chancellor Angela Merkel told US President George W. Bush on Saturday she would be willing to support a third round of UN sanctions against Iran if Tehran continues to resist demands to halt sensitive nuclear work.

Merkel, in a visit to Bush's ranch in Crawford, also said she would consider possible cuts in her country's brisk trade flows with Iran should other efforts fail to secure Tehran's cooperation over its nuclear program.

Bush agreed with Merkel that diplomacy was the best way to resolve the standoff with Iran.

"We were at one in saying that the threat posed through the nuclear program of Iran is indeed a serious one," Merkel said at a joint news conference with Bush.

"We both share this view, but we also were of the opinion that we think that this issue can be solved through diplomatic means; that the next step, then, obviously, would be a resolution," she said through a translator.

Merkel said she would wait for reports on Iran's nuclear activities from the European Union negotiator and the UN atomic watchdog before making a final decision on sanctions.

Britain, France, Germany, the United States, Russia and China are expected to meet on November 19 to assess reports from European Union foreign policy chief, Javier Solana and International Atomic Energy Agency head, Mohamed El Baradei.

"If the reports remain unsatisfactory ... we need to think about further possible sanctions. ... We also have to then talk and agree on further possible sanctions," Merkel said.