http://today.reuters.com/news/newsArticle.aspx?type=worldNews&storyID=2005-0
8-08T185127Z_01_N08343525_RTRIDST_0_INTERNATIONAL-NUCLEAR-IRAN-DC.XML
Iran resumes atomic work, escalates crisis Mon Aug 8, 2005 2:51 PM ET By
Parisa Hafezi

ISFAHAN, Iran (Reuters) - Iran resumed work at a uranium conversion plant on
Monday, fanning Western fears it may be seeking nuclear weapons and defying
EU warnings that it could be referred to the U.N. Security Council for
possible sanctions.

The International Atomic Energy Agency, the U.N. nuclear watchdog, confirmed
Iran has restarted some nuclear activities that had been mothballed under a
deal with the European Union's three biggest powers.

The agency stopped short, however, of saying that Iran had ended its
suspension of all atomic activities that could be used to develop weapons
agreed with the EU in Paris in November.

Britain, Germany and France, heading nuclear negotiations with Iran for the
EU, have called an emergency meeting of the IAEA board of governors for
Tuesday at its headquarters in Vienna. France and Britain later condemned
Iran's actions.

"IAEA Director General Mohamed ElBaradei informed members of the (IAEA)
board of governors that Iran today started to feed uranium ore concentrate
into the first part of the process line at the uranium conversion facility,"
it said in a statement.

"It should be noted that the sealed parts of the process line remain
intact," said the statement, issued on the eve of an emergency IAEA board
meeting about the Iran crisis.

To monitor Tehran's compliance with the Paris agreement, the IAEA had sealed
sensitive equipment at Iran's uranium conversion facility at Isfahan and its
uranium enrichment plant at Natanz.

EU diplomats said breaking any IAEA seals would cross a red line that would
eventually lead to a U.N. referral.

Mohammad Saeedi, deputy head of Iran's Atomic Energy Organization, said
Tehran intended to break IAEA seals and restart work at other parts of the
Isfahan plant on Tuesday.

ENRICHMENT

At Isfahan, two workers wearing white overalls, face masks and hard hats
lifted a barrel of uranium yellow cake, opened its lid and fed it into the
processing line.

It means Isfahan, which processes raw uranium to prepare it for enrichment,
has restarted the nuclear fuel cycle. Using the sealed parts of the plant
would take the process further, but still nowhere near the possibility of
making nuclear weapons.

Tehran has so far been careful to stress that it is not restarting work on
the most sensitive element of the cycle -- uranium enrichment, a process
that can be used to make reactor fuel or atomic warheads.

A nuclear scientist, who declined to be named, said: "I am excited, I didn't
believe it until the last moment thinking this may not happen, but now I am
very happy."

Iran suspended nuclear fuel work as a confidence-building measure while it
explored a long-term arrangement with the EU.

Iran -- which denies harboring nuclear weapons ambitions -- also delivered
its formal rejection of a EU package of political and economic incentives
designed to persuade it to scrap nuclear fuel work for good.

"The EU proposal was very insulting and humiliating," Saeedi said.

SHARP REACTIONS

French Foreign Minister Philippe Douste-Blazy said Iran's resumption of
nuclear work violated November's accord, adding the tone of Tehran's
rejection of EU proposals was "particularly alarming."

"It's a clear violation of the Paris accord and the resolutions of the
IAEA," Douste-Blazy told France Info radio "It's a new situation that only
makes us increase our doubts over the aims of the Iranian program."

Last week, Douste-Blazy said Iran would be brought before the Security
Council for possible sanctions if it ended the nuclear suspension.

British Foreign Office Minister Ian Pearson described Iran's rejection of
the EU offer as "damaging."

A State Department official, who asked not to be named because the United
States was forming its official response, said: "It's a symbolic, political,
in-your-face move. But it makes no sense that in some way this is in Iran's
interest."

Despite the sharp reactions, EU diplomats said it would not be easy to
convince all 35 IAEA board members at this week's meeting to issue a stern
warning to Iran to refrain from all uranium conversion and enrichment
activities -- which it has the right to conduct under the nuclear
Non-Proliferation Treaty.

Iran, aware of its legal rights and the lack of unanimity on the IAEA board,
said it was unconcerned.

"Even if they issue a resolution tomorrow, since it would have no legal
basis and would violate the nuclear Non-Proliferation Treaty, we won't
accept it and will carry on with our work," Saeedi told a reporters invited
to witness the resumption of work at Isfahan.

Iran says the EU proposal, which included offers of help to develop civilian
nuclear energy and in becoming a major transit route for Central Asian oil,
is unacceptable as it denies Iran the right to produce its own nuclear fuel.

(Additional reporting by Vienna, Paris, Berlin, Washington, London bureaux)

C Reuters 2005. All Rights Reserved.




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