July 13, 2006

UN mulls Iran incentive deal

Corrects to Iran from Iraq in 4th paragraph.

By Evelyn Leopold

UNITED NATIONS (Reuters) - Major powers turned over to the
15-nation U.N. Security Council on Thursday details of energy
and economic incentives they offered to Iran if it suspends its
nuclear ambitions and stops uranium enrichment.

The three-page incentive package, which had not previously
been released in full, includes a pledge to "actively support"
the building of new light water power reactors in Iran,
according to the text.

Iran has not responded to the offer, made in June, so the
key negotiators, Germany and the five permanent Security
Council members -- the United States, Britain, France, Russia
and China -- referred the issue back to the council in a
meeting in Paris on Wednesday.

The 15-member body will attempt to adopt a resolution next
week that would make the suspension mandatory. If Iran still
does not comply, the six nations said they would consider
sanctions against Tehran.

"I think the first step ... is we will move to make
mandatory the requirement that Iran suspend its uranium
enrichment activities with some reasonably short time fuse on
that," U.S. Ambassador John Bolton said.

"And that then would be followed by looking at targeted
sanctions," Bolton said. "We hope to move as quickly as
possible, possibly within the next few days -- but
realistically early next week.

However, China's U.N. ambassador, Wang Guangya, hesitated
in committing Beijing to a mandatory resolution, despite
agreements in Paris. He said any text had to be considered

The United States, Britain and France in early May
introduced a resolution that will be the basis of a new draft.
The May document demands Iran suspend uranium enrichment that
the West suspects is part of a secret nuclear weapons program.

The draft calls on all nations to "exercise vigilance" in
preventing the transfer of materials and technology "that could
contribute to Iran's enrichment-related and reprocessing
activities and missile programs."

Among the incentives in the document distributed to all 15
Security Council members late on Thursday were:

- A commitment to "actively support" the building of new
light water reactors in Iran through international joint

- Negotiate and implement a nuclear cooperation agreement
with Euratom, the European Atomic Energy Community.

- Establishing on commercial terms stock to hold a reserve
of up to five years supply of nuclear fuel for Iran, under
supervision of the Vienna based International Atomic Energy
Agency, the U.N. nuclear watchdog.

- The incentives also promised to improve Iran's access to
the international economy, markets and capital, through support
in the World Trade Organization and other groupings.

Iran ended a freeze on uranium enrichment in January and
insist its only aim is to produce fuel to generate power. The
issue was referred to the U.N. Security Council in March by
nations on the board of the International Atomic Energy Agency.

But Russia and China refused to adopt a resolution after
which the five Security Council powers and Germany agreed to a
package of incentives offered to Iran in early June by Javier
Solana, the European Union's foreign policy coordinator.