IRAN: Iran has rejected a package of incentives offered by the EU in return for an indefinite suspension of all nuclear fuel work.
The EU has called an urgent meeting of the UN nuclear watchdog, a move that signalled a breakdown in negotiations with Iran over its nuclear ambitions. This could result in Iran coming before the UN Security Council and facing possible sanctions.
For two years the EU has resisted calls by Washington to refer Iran to the UN Security Council, but promised the US that it would acquiesce should negotiations break down and Iran defy the International Atomic Energy Agency.
However, Iranian officials have said they will flout the EU's requests, and that Iran will resume work at a nuclear fuel plant.
"The proposals are unacceptablethey negate Iran's inalienable right," said nuclear negotiator Hossein Moussavian.
Mr Moussavian also said Iran's decision to resume conversion of uranium ore into a gas that can be used in the enrichment process was "irrevocable".
Iran maintains its right to enrich uranium for a civil programme as a signatory to the nuclear non-proliferation treaty.
However, Washington is convinced that Iran's nuclear programme is a smokescreen for building a nuclear arsenal.
Enriched uranium is used in nuclear power plants but if highly enriched it can be used to make atomic bombs. Iran is defiant that it will resume uranium conversion, a preliminary stage in the nuclear cycle, and says it needs nuclear energy to generate electricity. Iran has one of the highest growing electricity consumption rates in the world.
French foreign minister Philippe Douste-Blazy warned that the world would face a "major international crisis" if Iran does not accept the EU's proposals.
The package was submitted to 15 top Iranian officially yesterday by ambassadors from the EU3 - Britain, France and Germany.
As well as covering nuclear issues, it covers political and security concerns, economic and technology co-operation and support for the building of nuclear power stations.
However, Reuters reported two sources at the meeting saying one ambassador made it clear to the Iranians that the EU proposals were not definite and were "negotiable and expandible".
Reuters reported one of its sources quoted the ambassador as saying: "The only item which is definite is the one which asserts that the EU3 considers no difference between enrichment and uranium conversion activities."
Iran has maintained that it will resume only a gas conversion process, which it says is not part of the suspension. The EU disagrees, saying that gas conversion is a "nuclear activity".
Iran has spent more than 20 years developing - mostly secretly - its enrichment programme, and analysts say Iran will not give up its mission to produce fuel without a fight.
Iran's nuclear ambitions have become an issue of national pride, uniting Iranians from all political factions and classes. Ayatollah Ahmad Jannati, secretary of the hardline Guardian Council, sent out a strong message at Tehran's Friday prayers.
"The Europeans, the Americans and the whole world should know that however many bribes they give, on no condition will Iran abandon its rights; we have definitely made our decision and whatever they do it will be harmful for them."