US President George W. Bush said he was "deeply suspicious" of Iran but was not ready to seek UN sanctions against Tehran for its suspected nuclear-weapons program.
Speaking to reporters at his Texas ranch on Tuesday, Bush said the newly elected president of Iran, Mahmoud Ahmadinejad, had indicated a willingness to continue discussions with European nations.
"The man said he wanted to negotiate," Bush said following a meeting with his economic advisers.
He added that if Iran does not cooperate, UN sanctions are "a potential consequence."
While expressing a willingness to talk, Ahmadinejad named Ali Larijani, one of the most hardline elements in the Islamic government, to head the negotiations. Ali Agha Mohammadi, a spokesman of Iran's Supreme National Security Council, told AP of Larijani's appointment.
Over the weekend, Iran rejected a package of economic, political and technological incentives offered by Britain, France and Germany. The incentives were extended in return for assurances that Tehran would not pursue nuclear weapons. Iranian officials said the package was rejected mainly because it did not recognize Iran's right to enrich uranium, which can be used for producing both nuclear energy and nuclear weapons.
On Monday, Iran resumed the process of converting uranium at its Isfahan nuclear facility -- a step that Europeans and the US have warned would prompt them to seek UN sanctions.
State Department spokesman Adam Ereli on Monday characterized the new conversion activities as "Iran thumbing its nose" at the Europeans' diplomatic offer.
In the past, Bush has issued stern warnings against Iran, which insists its nuclear program is peaceful and geared solely toward generating energy. The US and other nations think Tehran is hiding a weapons program, especially since Iran has vast supplies of petroleum and natural gas.
At the ranch, Bush seemed to take a softer approach.
"Just as I was walking in here, I received word that the new Iranian president said he was willing to get back to the table," Bush said, calling that a positive sign.
It is unclear, however, how long the Bush administration will back negotiations with the conservative new Iranian president.
Because of uncertainty about his role in events surrounding the US embassy takeover in 1979, the State Department is considering whether to grant Ahmadinejad a US visa to attend a massive UN General Assembly gathering in New York next month.
Bush said that Iran should be clear that the US stands squarely behind the negotiations led by the three European nations, dubbed the EU-3.
"In terms of consequences if the Iranians continue to balk, we'll work with the EU-3," Bush said.
"They're the lead negotiators on behalf of the free world. And we will work with them in terms of what consequences there may be. And certainly the United Nations is a potential consequence," he said.
Also on Tuesday, the UN nuclear watchdog agency held an emergency meeting in Vienna to assess Iran's resumption of uranium conversion.
Diplomats in Vienna said the International Atomic Energy Agency (IAEA) was likely to issue a resolution by today urging Tehran to again suspend its nuclear activities.
"Iran must not be allowed to violate its international commitments and must not be allowed to develop nuclear weapons," said Gregory Schulte, US envoy to the IAEA.
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