British, French and German foreign ministers headed to Iran yesterday with a carrot and stick proposal aimed at persuading Tehran to dispel fears its nuclear programme is part of a secret bid to make atomic bombs.

"Resolving the doubts surrounding Iran's nuclear programme is of grave concern to the European Union (EU) and wider international community," British Foreign Secretary Jack Straw said in a statement.

Diplomats said the key issue in yesterday's talks would be whether Iran insisted on continuing its plans to master the entire nuclear fuel cycle, including enriching uranium.

"This is where the toughest discussions are likely to focus," one diplomat said.

A senior Iranian official hinted for the first time yesterday that Tehran could mothball uranium enrichment facilities it began building in 1985. Some Western powers fear they could be used to produce weapons-grade uranium.

Asked by reporters if Iran was prepared to stop enriching uranium, President Mohammad Khatami said: "We will do whatever is necessary to solve the problems."

He was speaking less than two weeks before expiry of an October 31 UN deadline for Tehran to disprove US-led allegations it is conducting a covert nuclear arms programme.

UN inspectors have found arms-grade enriched uranium at two Iranian facilities this year, but Iran blames this on contamination from machinery it bought on the black market. Low grade enriched uranium is used as fuel in atomic reactors but highly enriched uranium can be used to make atomic weapons.

Diplomats said the EU ministers would demand Iran cooperate fully with the International Atomic Energy Agency (IAEA), accept tougher UN inspections and halt uranium enrichment.

In return, the ministers would offer to recognise Iran's right to a civilian nuclear energy programme, give some technical assistance and guarantee Iran's access to imported fuel for nuclear power plants.

"It (the EU ministers' proposal) would sugar the bitter pill that Iran would have to swallow," one diplomat said.

"Of course, if they fail to reach an agreement it would send a powerful message that Iran is not cooperating to the next IAEA board meeting," on November 20, he added.

IAEA Chief Mohamed ElBaradei has warned Iran's case may go to the UN Security Council if he is unable to verify by November that Iran has no intention of building nuclear arms.

A breakthrough on Iran's nuclear programme would be a major coup for the three big European Union powers, whose opinions on the US-led war in Iraq differed markedly. It was not clear whether their initiative was backed by Washington, which has tended to frown on any deal-making with Iran's clerical leaders.

Diplomats from the three European countries had said up until the last minute that the visit was far from certain. The three ministers were due to arrive in Tehran late on Monday night and in the early hours of Tuesday.

They will meet President Khatami, Foreign Minister Kamal Kharrazi and Supreme National Security Council chief Hassan Rohani on Tuesday, diplomats said.

ElBaradei, who has described the European initiative as a "win-win" scenario, was given assurances during a visit to Tehran last week that Iran would answer all of the IAEA's outstanding questions about its nuclear programme and was willing to accept tighter inspections.

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