IRAN's response to the latest offer of incentives by world powers shows no willingness to meet their core demand for a freeze or suspension of activities that the West suspects are part of a secret nuclear bomb program. The deadlock means Iran, which says its nuclear work is purely peaceful, is likely to face more sanctions, even if these are not imposed by the UN Security Council, diplomats said. “There is no give on the substance whatsoever,” said a Western diplomat familiar with Iranian Foreign Minister Manoushehr Mottaki's written reply to the package transmitted by European Union foreign policy chief Javier Solana last month. Seemingly conciliatory remarks by some Iranian officials and a relatively public debate in Tehran over how best to respond had sparked speculation about a possible Iranian policy shift. But the Iranian government said at the weekend it had no intention of discussing Iran's “right to enrich uranium.” The United States, Russia, China, Britain, France and Germany had proposed formal negotiations on their package, which includes help to develop a civil nuclear program, if Iran suspended enrichment. Enriched uranium can be used to fuel power plants and, if refined much more, to make nuclear bombs. In a separate letter meant to smooth the path to such talks, the world powers had also offered to freeze measures to toughen sanctions if Tehran froze any expansion of its nuclear work. The diplomat said Mottaki's letter Friday had merely offered talks on “common points” contained in the international package and an earlier Iranian proposal to settle the dispute. “It's the minimum necessary for them to be able to claim they are engaging constructively and have not rejected the offer or approach out of hand,” the diplomat added. The hardline Kayhan newspaper also said Mottaki had offered talks on “common points”, adding: “Since the suspension of uranium was not a common point of the two packages, it could naturally not be regarded as one of the points of negotiation.” Solana said in Paris Monday he had accepted a request for a meeting from Iran's chief nuclear negotiator and expected it to take place this month. Western diplomats said such a meeting would not in itself break momentum for more sanctions. Iran has held to its “red line” on uranium enrichment while sending signals in contrast with its frequently combative tone. Mottaki himself spoke at the weekend of a “new environment” for diplomacy over Iran's nuclear program. “We hear new voices in America. We see new approaches, and we think that the rational thinkers in America can, based on these new approaches, seek reality as it is. We are ready to help them in this endeavor,” he told CNN. Mottaki would not say if he was referring to Democratic presidential candidate Barack Obama, who has drawn controversy in America for saying he would be ready to negotiate with Iran. The Iranian authorities, primarily Supreme Leader Ayatollah Ali Khamenei, may reckon it is pointless to offer any nuclear concession – if any has to be made – to what they see as the hostile outgoing administration of President George W. Bush. They may also calculate they can pursue their nuclear policy until a new US president takes over in January, or even until after Iran's presidential election in June without running a grave risk of military attack by the United States or Israel. “At the same time the clock is ticking,” another diplomat said. “And if they go on installing more centrifuges (for enrichment), the time when the border line, the red line, is in view for the Israelis and Americans is also closer.” Israel, assumed to be the Middle East's only nuclear-armed power, has vowed to prevent Iran from acquiring an atomic bomb. Its US ally has refused to rule out military action, but says it is committed to diplomacy to resolve the conflict. Tension over Iran, the world's fourth-largest oil exporter, has helped push crude prices to record highs. If Iran pursues its nuclear work, the West at least is likely to wield more economic sticks, although Russian and Chinese reluctance may preclude adding to three sets of mild sanctions already imposed by the UN Security Council. “There will be additional pressure on Iran, even if it's not possible in the Security Council,” the second diplomat said. In the next few months, the EU is likely to consider taking action under a Council resolution adopted in March. Last month it froze the assets of Iran's largest lender, state-owned Bank Melli, implementing a previous UN sanctions measure. Iran, awash in windfall oil revenue, dismisses sanctions as pinpricks and threatens to shut the Strait of Hormuz, the conduit for 40 percent of globally traded oil, if attacked. – Reuters __
