The Bush administration is holding talks with its European allies on a possible package of economic incentives for Iran, including access to imported nuclear fuel, in return for suspension of uranium enrichment activities that are suspected to be part of a nuclear arms program, European and US diplomats said on Monday.
The diplomats said that while the administration had not endorsed any incentives for Iran, it was not discouraging Britain, France and Germany from assembling a package that the administration would consider after the US presidential election on Nov. 2, for likely presentation to Tehran later in the month.
PHOTO: EPA/DIGITALGLOBE
Any support of a package of incentives, even if it is to be offered only by the Europeans, would indicate a significant shift in the Bush administration policy of demanding penalties, but not offering inducements, to get Iran to halt activities that are suspected to be for a nuclear arms program.
European diplomats said that the administration was very squeamish about even discussing incentives, in part because it would represent a policy reversal that would provoke a vigorous internal debate, and in part because of the presidential campaign in which Senator John Kerry, the Democratic candidate, has made Iran an issue, criticizing the administration for not working more closely with European nations.
Kerry has said that if elected he would endorse a deal supplying Iran with civilian nuclear fuel under tight restrictions and would press for sanctions if Iran refused.
Under prodding from the US, the International Atomic Energy Agency has set late November as the deadline by which Iran must comply with demands that it do more to disclose its nuclear activities. The US wants to send the matter to the UN Security Council for discussion of sanctions if there is no compliance.
"The Europeans are in discussion to present some kind of package to present to Iran within the short window of opportunity between the American election and the end of November," said a European diplomat. "If it works, fine. If it doesn't work, we are going to have to talk about sanctions."
The package under discussion, besides allowing Iran to import nuclear fuel for the civilian reactor it is planning to install at Bushehr, might also lift certain economic penalties on Iran, allowing it to import of spare parts for its ailing civilian airline.
But the discussions with the Europeans are also said to include specifics on what sanctions would be sought if Iran turns down any incentives presented by the Europeans, the European and US diplomats said. Because there may not be enough votes for sanctions on the Security Council, sanctions might only be adopted by the US, Britain, France, Germany and Japan.
"If there is going to be a substantial Iran policy, it has to have incentives for Iran or it may not work," said a European diplomat. Another European diplomat said that although the incentives had not been fleshed out for endorsement in Washington, there had been "an ongoing process of discussion between the Europeans and the Americans" and that whatever the Europeans come up with next month "will not come as a surprise" to Washington.
European officials said that whether or not Bush is re-elected, the administration could find itself facing a tough deadline and divided over how to proceed.
Details of the highly sensitive talks on Iran between Europe and the US have begun to leak out in Europe and were disclosed by European officials who advocate an approach of some conciliation toward Iran as the only way to change its behavior.
Foreign ministers of the EU, who met on Monday in Luxembourg, said that they supported the approach of what officials called "carrots and sticks" for the government in Tehran.
After these disclosures, an administration official subsequently confirmed that the discussions with European nations were under way.
"We are still dealing with theoreticals," the US official said, adding that the discussions were intense.
Officials knowledgeable about the package under discussion say that many of the details still need to be fleshed out. But they say that US sanctions on Iran would have to be lifted in order for the package to be accepted.
The package being discussed would, among other things, let Iran import nuclear fuel from Russia for its reactor at Bushehr, under an agreement in which Russia would then reimport the spent fuel and store it.
In return, Iran would suspend its enrichment of 33.5 tonnes of "yellowcake," which is nearly raw uranium.
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