Tehran fails to dispel IAEA 'concern' By Daniel Dombey February 28, 2006 The Financial Times Original Source: http://news.ft.com/cms/s/ee313e38-a7fe-11da-85bc-0000779e2340.html Iran has failed to dispel suspicions that it is secretly trying to develop nuclear weapons grade material, and its atomic programme remains a matter of concern, according to a long-awaited report. The report, compiled by Mohamed ElBaradei, director-general of the International Atomic Energy Agency, the United Nations nuclear watchdog, also warns that Iran is stepping up uranium enrichment - the process that can produce weapons-grade material. The paper was circulated to ambassadors yesterday and will be forwarded to the UN Security Council next month. Western diplomats said it strengthened their case for united international condemnation of Iran, although the Security Council is unlikely to debate sanctions on Tehran in the near future. Although the agency has not seen any diversion of nuclear material to nuclear weapons or other nuclear explosive devices, the agency is not at this point in time in a position to conclude that there are no undeclared nuclear materials or activities in Iran, the report said. The report added that Iran's full transparency was essential in light of the existence of a generic document related to the fabrication of nuclear weapons components and the lack of clarification about the role of the military in Iran's nuclear programme. It added that Tehran had failed fully to explain its efforts to import, manufacture and use centrifuges for uranium enrichment. It is regrettable, and a matter of concern, that the above uncertainties related to the scope and nature of Iran's nuclear programme have not been clarified after three years of intensive agency verification, it said. The report also noted that Iran had resumed enrichment tests on February 11, since when it had expanded the activity. Tehran, which insists its programme is purely peaceful, announced last month that it was resuming such research, an action which led the IAEA board to report it to the Security Council. Iran has subsequently scaled down its co-operation with IAEA inspectors. The European Union hopes that by increasing the pressure step by step it can convince Iran to repeat its tactical decision to suspend uranium enrichment. Western diplomats argue their case is strengthened by unity among the five permanent Security Council members, including Russia and China. They add the first step once the file reaches New York will be a declaration by Argentina, which holds the Security Council presidency in March, calling on Iran to abide by past IAEA resolutions. On Sunday Iran said it had reached a basic agreement on a joint venture with Russia to enrich uranium, but yesterday it made clear that it would only take such a step if it could continue its research into enrichment in Iran itself.