IRAN/EU: A breakthrough deal between Iran and the EU aimed at defusing an international crisis over Tehran's alleged nuclear ambitions was thrown into uncertainty last night when diplomats said Iran was rushing to process feed material for bomb-grade uranium.
Under last weekend's agreement, Iran is to freeze all aspects of its uranium enrichment programme from Monday. But citing sources within the International Atomic Energy Agency in Vienna, diplomatic sources said Iran was "going all out" ahead of Monday to process uranium concentrate into uranium hexafluoride, the gas that is spun through centrifuge machines to produce nuclear fuel or warhead material.
The Iranian move, if confirmed, could wreck the agreement and set the scene for a stormy meeting of the IAEA's 35-strong board next week.
Iran said the suggestion was "a lie". But diplomats monitoring its nuclear programme said the activity was a clear act of bad faith. The new development could also play into the hands of hawks in Washington who are keen to secure economic sanctions or even military action against Tehran.
The US drumbeat for regime change has only intensified with the success of European efforts to broker a diplomatic agreement with Iran. Administration hawks dismiss the agreement as a sham.
This week the Bush administration said Iran was actively trying to develop a missile delivery system for a nuclear bomb, an assertion that raised doubts about the credibility of its intelligence.
The outgoing secretary of state, Mr Colin Powell, told reporters: "We are talking about information that says they not only have missiles but information that suggests they are working hard about how to put the two together." The remarks provoked sharp criticism from abroad, deepening the divide between Europe and America about how to deal with Tehran's nuclear programme.
The new rhetoric immediately aroused suspicions about Mr Powell's motives, fuelling suspicion that Washington was intent on sabotaging the EU deal.
"At this point, the Iranians do not have any nuclear weapons, so it's impossible to use the missiles with nuclear weapons," said the European Union foreign policy chief, Mr Javier Solana.
Although missile experts believe it is likely that Tehran would harbour plans to couple its Shahab missiles with a nuclear warhead, Mr Powell's claims were based on a single, unverified source.