VIENNA, Nov 10: The United States and European Union are ready to drop objections to Iran converting uranium, the first stage in making nuclear fuel, diplomats said on Thursday, but Tehran would have to renounce the key next step of enrichment.

They said the West is seeking the wide international backing it needs to present the compromise to Iran, but there is deep scepticism among diplomats that Tehran would accept.

Uranium can be enriched to make civilian nuclear reactor fuel, but also the raw material for atomic weapons.

In addition, Iran would have to at least temporarily give up all nuclear fuel activities in order to re-start talks with the EU, something Tehran has already ruled out.

The talks broke down in August when Tehran rejected an offer of incentives in exchange for a cessation of uranium conversion it had resumed earlier that month.

UN atomic watchdog chief Mohamed ElBaradei is holding off on travelling to Tehran to present the proposal aimed at resolving the crisis over Iran’s nuclear program, which the United States claims may be a cover for developing weapons.

“It depends if this proposal gets buy-in from Russia and China, and also some non-aligned countries,” a Western diplomat said.

IAEA spokeswoman Melissa Fleming said: “Dr ElBaradei hopes that in the coming days the international community will be able to coalesce around a solution that is acceptable to all parties, including Iran.

“Dr ElBaradei has a standing invitation to visit Iran, and while he has no plans to do so at present, he is ready to travel to Iran at an appropriate time if it will help facilitate a solution.”

Under the proposal, Iran could convert uranium ore into uranium hexafluoride gas, the feedstock for making enriched uranium.

The gas produced would then be taken to Russia for enrichment in what could be a joint venture with Iran, although Tehran’s participation might be limited to a financial rather than technical role.

The West wants to restrict Iran’s participation in eventual enrichment in Russia.

Russia is prepared to enrich uranium for Iran on Russian territory as part of efforts to resolve the standoff over Tehran’s nuclear programme, Nikolai Shingaryov, spokesman for the atomic energy agency Rosatom, said in Moscow.

Political directors from the foreign ministries of EU negotiators Britain, France and Germany met a senior Russian envoy in Vienna on Thursday but failed to reach a final agreement.

A Western diplomat said the United States was letting Europe take the lead on this issue as Washington was trying to show Russia its ‘commitment to a diplomatic solution’.

If Iran rejects this, US hopes Russia may then back a Western drive to take Iran before the UN Security Council, which could impose penalties such as trade sanctions on Tehran.

Russia, which has a lucrative contract to build Iran’s first nuclear power reactor, has a veto on the Security Council.

On Sunday, Iranian nuclear negotiator Ali Larijani sent the so-called EU-3 a letter offering to resume talks but insisting on Iran’s right to the complete nuclear fuel cycle, including conversion.

The United States and Europe, as well as ElBaradei, are hoping for support for the proposal from India, South Africa, Brazil and Egypt, which play a key role at his International Atomic Energy Agency (IAEA).

The agency is investigating Iran’s nuclear program and will meet to discuss it on Nov 24, diplomats said.

A European diplomat said the proposal was ‘not yet on the table’ and that Britain, Germany and France were ‘exploring what flexibilities there might be with other countries to see if we might come to an agreement’.

The IAEA’s 35-nation board of governors in September found Iran to be in non-compliance with the nuclear Non-Proliferation Treaty, paving the way for the matter to be referred to the Security Council. —AFP