EU offer is 'very positive'

Herewith are extracts of a proposal by world powers offering Iran talks on a package of trade incentives and other benefits if it suspended uranium enrichment.

The proposal was handed over in Tehran by the European Union foreign policy chief Javier Solana on behalf of the six world powers -- Britain, France and Germany (the so-called EU-3) as well as China, Russia and the United States -- according to a text shown to AFP.

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"We propose a fresh start in negotiations of a comprehensive agreement between Iran and the E3/EU, with the support of China, Russia and the United States and other members of the international community. Such an agreement would be deposited with the IAEA (International Atomic Energy Agency) and endorsed in a Security Council resolution."

To create the conditions for negotiation, the six powers promised to:

- "reaffirm Iran's right to develop nuclear energy for peaceful purposes in conformity with its NPT (nuclear Non-Proliferation Treaty) obligations, and in this context reaffirm their support for the development by Iran of a civil nuclear energy programme

- "commit to actively support the building of new light water reactors in Iran through international joint projects ...

Iran, for its part, promised to:

- "commit to addressing all the outstanding concerns of the IAEA through full cooperation with the IAEA

- "suspend all enrichment-related and reprocessing activities ...

- "resume implementation of the Additional Protocol" (for wider IAEA inspections)

A section on "areas of future cooperation" includes the aims:

-"reaffirm Iran's inalienable right to nuclear energy for peaceful purposes without discrimination and in conformity with Articles I and II of the NPT, and cooperate with Iran in the development by Iran of a civil nuclear power programme

-"negotiate and implement a Euratom/Iran nuclear cooperation agreement.

- "actively support the building of new light water power reactors in Iran through international joint projects," including by providing technology to make its power reactors safe against earthquakes.

- "provide cooperation with the management of spent nuclear fuel and radioactive waste through appropriate arrangements

The world powers would also give legally binding, fuel assurances to Iran, based on:

-"participation as a partner in an international facility in Russia to provide enrichment services for a reliable supply of fuel to Iran's nuclear reactors. Subject to negotiations, such a facility could enrich all the UF6 produced in Iran.

- "establishment on commercial terms of a buffer stock to hold a reserve of up to five years supply of nuclear fuel dedicated to Iran, with participation and under supervision of the IAEA."

"The long-term agreement would, with regard to common efforts to build international confidence, include a clause for review of the agreement in all its aspects, to follow:

- confirmation by the IAEA that all outstanding issues and concerns reported by the IAEA, including those activities which could have a military nuclear dimension, have been resolved, and;

-"confirmation that there are no undeclared nuclear activities or materials in Iran and that international confidence in the exclusively peaceful nature of Iran's civil nuclear programme has been restored."

Political and economic benefits if the package is agreed:

- "support for a new conference to promote dialogue and cooperation on regional security issues.

- "improving Iran's access to the international economy, markets and capital, through practical support for full integration into international structures, including the WTO (World Trade Organization), and to create the framework for increased direct investment in Iran and trade with Iran (including a Trade and Economic Cooperation Agreement with EU)

-"civil aviation cooperation, including the possible removal of restrictions on US and European manufacturers, from exporting civil aircraft to Iran, thereby widening the prospect of Iran renewing its fleet of civil airliners

-"establishment of a long-term energy partnership between Iran and the EU, and other willing partners, with concrete and practical applications

-"support for the modernisation of Iran's telecommunications infrastructure and advanced internet provision, including by possible removal of relevant US and other export restrictions

"support for agricultural development in Iran, including possible access to US and European agricultural products, technology and farm equipment."