IRAN: Iranian President Mohammad Khatami has said he is optimistic that talks with the European Union would yield a solution to the dispute over Tehran's nuclear programme which Washington says is a covert bid for atomic arms.
"If the EU accepts our right to produce nuclear technology for peaceful purposes, we are ready to assure the world and the EU that we will not pursue nuclear weapons," Mr Khatami told reporters. "We can reach a solution, I am optimistic."
Iran says its nuclear ambitions do not go beyond a desire to produce electricity from atomic reactors. But its insistence on making its own nuclear fuel for the reactors has raised concerns it could use the same facilities to produce atomic bombs.
Enriched uranium can be used as reactor fuel or, if enriched further, to make atom bombs.
The EU has given Iran an ultimatum to freeze all uranium enrichment activities indefinitely before a November 25th meeting of the International Atomic Energy Agency (IAEA) board or face being taken to the UN Security Council for possible sanctions.
EU and Iranian officials are due to hold a third round of talks on Friday to discuss an EU package of incentives for Iran in return for its agreeing to scrap uranium enrichment.
"Both sides show flexibility," Mr Khatami said. "We are ready to reach an agreement. We will continue negotiations and hope that, with the realisation of the Iranian nation's rights, we will pass this stage. I'm not pessimistic in this regard."
EU foreign ministers discussed the Iran talks at a meeting in Brussels. German Foreign Minister Joschka Fischer told reporters the talks were tough but the Europeans wanted to stick with diplomacy and see it through.
"These are difficult talks but I think that the three member-states that are conducting them with [ EU foreign policy chief Mr Javier] Solana on a working level of officials should finish these negotiations," Mr Fischer said.
An EU diplomat familiar with the negotiations said that despite often tough rhetoric from Tehran, the Islamic state's clerical leadership was keen to avoid Security Council referral.
"They clearly want to reach a deal before the IAEA board [ meeting]. They may say they don't fear the Security Council but they know that if their case ends up there it takes on a different dynamic," he said.
IAEA head Mr Mohamed ElBaradei said in a speech to the UN General Assembly on Monday that Tehran needed to suspend all uranium enrichment-related and reprocessing activities as a confidence-building measure.
He noted that co-operation had improved appreciably.
Mr Khatami said Iran may be willing to freeze enrichment, but only on its own terms and only for a temporary period.
Mr Hossein Mousavian, one of Iran's top nuclear negotiators, said on Monday that Tehran would be prepared to suspend enrichment for six months at most - and only if the EU dropped demands that Iran scrap its nuclear fuel cycle activities for good.