UN watchdog finalising Iran nuclear report

The United Nations Security Council has given Iran until August 31 to halt enrichment and reprocessing activities, or face possible sanctions.

But Iran on Tuesday responded to an offer from six world powers of negotiations on trade, technology and security benefits if Iran freezes its strategic nuclear fuel work.

Although Tehran called for "serious talks" it gave no indication it would halt enrichment. However, there seems little doubt that Iran is pressing ahead with this strategic process.

A senior European diplomat, who saw the confidential Iranian response to the package from Britain, China, France, Germany, Russia and the United States, said that Iran had "not said 'no' to the offer but did say 'no' to suspending enrichment."

The Vienna-based International Atomic Energy Agency (IAEA) is to issue a report to the Security Council on August 31 after verifying whether Tehran has complied with the deadline.

On Monday, Iranian Atomic Energy Organisation deputy head Mohammad Saeedi had already insisted that a freeze on enrichment was "no longer possible."

Iran is also showing intransigeance over cooperation with IAEA inspectors.

Tehran has blocked inspectors from visiting a key underground site, a reinforced complex designed to withstand bombing attacks, at the Natanz enrichment facility, diplomats told AFP.

It has also refused visas for several inspectors and is granting mainly short-term, one-entry visas instead of longer-term, multiple-entry visas.

And Iran has formally complained about a UN atomic inspector, after refusing to admit two other inspectors, diplomats said.