http://today.reuters.co.uk/news/newsArticle.aspx?type=worldNews
<http://today.reuters.co.uk/news/newsArticle.aspx?type=worldNews&storyID=200
5-08-09T112842Z_01_KWA814198_RTRUKOC_0_NUCLEAR-IRAN.xml>
&storyID=2005-08-09T112842Z_01_KWA814198_RTRUKOC_0_NUCLEAR-IRAN.xml
 
 IAEA board meets after Iran restarts nuclear work
Tue Aug 9, 2005 12:28 PM BST



By Louis Charbonneau and Francois Murphy

VIENNA (Reuters) - The governors of the U.N. nuclear watchdog will hold an
emergency meeting on Tuesday after Iran resumed work at a uranium conversion
plant, fanning Western fears it may be seeking nuclear weapons.

The International Atomic Energy Agency confirmed Iran had restarted some
nuclear activities mothballed under a deal with the European Union's three
biggest powers.

Tehran defied EU warnings it could now be referred to the U.N. Security
Council for possible sanctions for having kept its work secret for years,
breaching the nuclear Non-Proliferation Treaty (NPT) that aims to thwart the
spread of nuclear arms.

The West could call for sanctions on the grounds that Iran illegally hid its
uranium enrichment programme, including a massive underground enrichment
plant at Natanz, the existence of which was revealed by exiled dissidents in
2002.

"If Iran doesn't resume the full suspension of all nuclear fuel activities,
it will face the U.N. Security Council," an EU diplomat told Reuters.

"This meeting probably won't call for a referral to the council. Iran will
be warned, and if it doesn't comply, then we will meet again and decide on
the Security Council," he said.

The IAEA board meeting was originally scheduled for 0830 GMT (0930 BST) but
was pushed back to 1300 to allow time for EU diplomats to try to persuade
key members of the agency's 35-nation board to unanimously issue a stern
warning to Iran.

IRAN CRISIS WEIGHS ON OIL MARKET

Oil hovered near a record $64 a barrel as traders worried the nuclear
stand-off with Iran and possible militant strikes in Saudi Arabia could
disrupt crucial Middle East exports.

France, Britain and Germany, the "EU3", hope to persuade all the developing
countries on the IAEA's 35-member board meeting to back an IAEA resolution
urging Iran to resume the suspension of all its uranium conversion
activities.

For two years, the EU3 has been trying to persuade Iran to abandon nuclear
technology that could be used to make bombs in exchange for political and
economic incentives, but Iran formally rejected the package.

Iran insists its nuclear programme is for the peaceful generation of
electricity.

While the Western countries on the IAEA board generally agree that the
agency's governors should demand that Tehran immediately renounce its plans
to restart its uranium processing and enrichment programme, developing
countries dislike the idea.

"They (developing states) see no legal grounds for referring Iran to the
Security Council because they say Iran is only ending a voluntary
suspension," an EU diplomat said.

Non-aligned developing states make up around a third of the board. While
they would be unable to block an EU-sponsored IAEA resolution, the board
prefers to make decisions by consensus and the non-aligned states could
block a consensus decision.

Some of the developing countries, including South Africa and Argentina, fear
the attempt to force Iran to give up sensitive nuclear activities could one
day be used against their own nuclear programmes and could therefore object
to it.

IRAN WARNS U.S. AND ISRAEL

In comments clearly aimed at the United States and Israel, Tehran said that
it would it drop all international nuclear commitments if its atomic
facilities were attacked.

"The day our facilities are attacked, we will put aside all our nuclear
commitments," outgoing Defence Minister Ali Shamkhani said in Tehran.

In 1981, Israel destroyed an Iraqi nuclear reactor at Osiraq. Like
Washington, the Jewish state has hinted that military force was an option in
dealing with the threat of a nuclear-armed Iran.

Iran froze nuclear fuel work in November while it explored a long-term
arrangement with the EU.

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.

Around 70 Iranian exiles from the National Council of Resistance of Iran
(NCRI), listed by the U.S. State Department as a terrorist organisation,
demonstrated against the Islamic government outside the IAEA headquarters in
Vienna.

"No nukes to the Mullahs," they chanted.

On Monday, the NCRI, which first revealed Natanz and several other hidden
sites in Iran, accused Iran of secretly assembling thousands of enrichment
centrifuges which it plans to deploy at covert sites around the country to
develop atom bomb fuel.

Iran's conservative media praised Tehran's decision to resume uranium
conversion, with many looking forward to the day when Tehran resumes all
nuclear activities.

"Iran's nuclear heart starts ticking," said the front-page headline of
Hemayat daily.

"Next step, Natanz," said the ultra-conservative Jomhuri-ye Eslami, in
reference to Iran's uranium enrichment plant.



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