Iran warns again

Iran vowed yesterday to resume industrial-scale atomic fuel production if the UN nuclear watchdog moves its case to the Security Council and a top US diplomat warned Tehran it could face "painful consequences".

Iran's top nuclear negotiator made the threat ahead of a key meeting of the UN's atomic agency this week. China has urged renewed talks to defuse the crisis. But the United States is said to be discussing a Security Council deadline for Tehran to halt nuclear activities or face intensified pressure.

Members of the UN's International Atomic Energy Agency (IAEA) agreed to report Iran to the Security Council last month after Tehran failed to convince the international community that its nuclear experts were intent on building power stations and not atomic arms.

The Security Council, which has the power to impose sanctions, is waiting until after today's meeting of the IAEA board of governors before deciding what action to take.

"Going to the Security Council will certainly not make Iran go back on research and development," Ali Larijani, secretary of Iran's Supreme National Security Council, told a press briefing.

"If our case is referred to the Security Council we will resume (industrial-scale) uranium enrichment," he added.

Iran temporarily agreed in November 2003 to shelve nuclear fuel work in exchange for political and trade incentives, but resumed one suspended activity, uranium conversion, last August.

Although diplomats say Iran is still some way from being able to resume atomic fuel production on a commercial scale, scientists say the devices used in research could produce enough material for a warhead within a year.

US Ambassador to the United Nations John Bolton said Iran faces "tangible and painful consequences" if it continues its nuclear activities and the US will use "all tools at our disposal" to stop this threat.

"The Iran regime must be made aware that if it continues down the path of international isolation, there will be tangible and painful consequences," Mr Bolton said at a convention of a pro-Israel US lobby group in Washington.

"The longer we wait to confront the threat Iran poses, the harder and more intractable it will become to solve," he added.

Since it was reported to the Security Council, Iranian officials have held talks with Russia and the "EU3" of Britain, France and Germany but appear not to have struck a compromise.

Chinese Foreign Minister Li Zhaoxing, whose country is a veto-wielding permanent member of the UN Security Council, urged Iran yesterday to resume those talks.

"China hopes Iran can as soon as possible resume negotiations with the European Union and negotiations with Russia," he said on the sidelines of China's annual session of Parliament.

The US is discussing a 30- to 60-day deadline for Tehran to halt its nuclear program and cooperate with international inspectors or face intensified pressure in the security council, a US official said.

Mr Larijani appeared to be distinguishing between being "reported" to the UN Security Council, meaning its case could also be handled by the IAEA and "referral" which would mean the case was solely in the hands of the Security Council.

"The logical behaviour for the board of governors would be to keep the case with the agency and let (IAEA) chief Mr (Mohamed) ElBaradei do his job," he said.