Big powers fail to break impasse on Iran's nuclear programme By Daniel Dombey and Stephen Fidler May 25, 2006 The Financial Times Original Source: http://news.ft.com/cms/s/7a4ff6b0-eb8a-11da-823e-0000779e2340.html Moscow and Washington failed to overcome their differences over Iran's nuclear programme yesterday, with a meeting of top diplomats in London breaking up without agreement on a common stance on the dispute. Moscow is reluctant to back any United Nations resolution that could pave the way for sanctions against Tehran, while Washington has misgivings about offering Iran nuclear technology and security assurances. With speculation continuing that a diplomatic impasse could ultimately lead to a US military strike on Iran, the European Union believes both threats and incentives are necessary to convince Tehran to change its path. It will be a key meeting today but I suspect it won't be the final meeting, said Margaret Beckett, British foreign secretary, before the gathering of foreign policy directors from the US, Russia, China, France, Britain and Germany. The US State Department later said great progress had been made at the meeting. Other diplomats emphasised their hope that a possible foreign ministers' meeting next week would break the impasse - despite a clash at the last encounter between Condoleezza Rice, US secretary of state, and Sergei Lavrov, her Russian opposite number. Although Iran announced in January that it would begin uranium enrichment, a process that can create weapons-grade material, the five permanent members of the UN Security Council have yet to agree on action in response to the move. The Security Council has only issued a non-binding declaration, even though Iran announced last month that it had successfully enriched uranium. While Iran insists its intentions are purely peaceful, the US and the EU fear Tehran is seeking to develop nuclear weapons. The International Institute for Strategic Studies, the London based think-tank, said yesterday Iran could produce enough material for a bomb as early as 2008. How soon Iran could produce 20kg to 25kg of highly enriched uranium for a nuclear weapon is now the key timeline, said John Chipman, IISS director-general. The IISS estimate of 2010 remains valid. Other estimates of 2009 and even 2008 are within the margin of error, given the number of unknowns. He added that given international inspectors' reduced access, policymakers now had to rely on worst-case scenarios. Some Iranian officials have indicated they would be prepared to negotiate over setting limits to uranium enrichment, but the US has made clear it will not accept any enrichment on Iranian soil. The US has also dismissed suggestions that it enter into direct talks with Iran. We don't have any reservations if the Europeans want to invite the Americans to join us in the negotiations, said an Iranian official.*France's Renault has signed a deal with Iran to build its no-frills Logan car in the Islamic republic, Reuters reported yesterday. The deal had been threatened by a row over exports.