Europe and Iran deal on nukes

[Mavdog]

Looks like the Iranians and the Euros came to terms on a nuclear deal.
-------------------------------------------------------------
Europeans Say Iran Agrees to Freeze Uranium Enrichment
By ELAINE SCIOLINO

ARIS, Nov. 15 - France, Britain and Germany announced Monday that they had reached a formal agreement with Iran committing the country to freeze a critical part of its nuclear program in exchange for an array of possible rewards.

Under the complex but limited agreement, intended to prevent Iran from developing nuclear bombs, Tehran has agreed to suspend all of its uranium enrichment and reprocessing activities while it negotiates the benefits it is to receive.

While both sides were relieved to reach an agreement, neither seemed particularly satisfied. Both sides had to make hard concessions, and the pact fell far short of the comprehensive deal the Europeans had hoped for, by which Iran would permanently stop enriching uranium.

Iran is the second largest oil producer in the Organization of Petroleum Exporting Countries, and the announcement of the deal appeared to have calmed fears in the commodities markets, propelling crude oil prices to their lowest levels in almost two months.

"We believe that the conclusion of this agreement can both allow for confidence-building in respect of Iran's nuclear program and represent a significant development in relations between Europe and Iran," Foreign Secretary Jack Straw of Britain said in a written statement. "It is essential now for the agreement to be implemented in full."

In Brussels, Javier Solana, the European Union's senior foreign affairs official, said the deal could open the way for "a solid, long-term agreement" with Iran if there could be "lasting confidence in the peaceful nature of Iran's nuclear program."

Enriched uranium has become a contentious issue because it can be used to make nuclear weapons as well as fuel for nuclear power plants.

The Bush administration reacted cautiously to the announcement, saying top officials wanted to study the agreement's details before endorsing it. But Secretary of State Colin L. Powell said that "we have seen a little bit of progress, hopefully, over the last 24 hours."

Administration officials said conservative hard-liners, most notably John R. Bolton, the under secretary of state for arms control and international security, were highly skeptical that Iran would carry out the accord without cheating. Officials were also said to be concerned that by itself the deal might lead to complacency that the problem of Iran's suspected nuclear arms program was being addressed.

The Europeans were deeply embarrassed after Iran violated a much vaguer agreement to suspend enrichment activities that was reached in Tehran 13 months ago. This time, the Europeans insisted that Iran accept the new agreement as negotiated and rejected Iran's attempts in the last several days to modify it.

In a related development, the United Nations agency that monitors nuclear programs said Iran had informed the agency that it would suspend its uranium enrichment program starting a week from now. That step, which covers verification and monitoring, was a necessary part of the pact with the Europeans.

But the agency, known as the International Atomic Energy Agency, did not totally reject the view of the United States and the three European countries that Iran was trying to develop nuclear weapons, saying it could not rule out covert activities.

"All the declared nuclear material in Iran has been accounted for, and therefore such material is not diverted to prohibited activities," the agency said in a report, referring to possible weapons activity. "The agency is, however, not in a position to conclude that there are no undeclared nuclear materials or activities in Iran."

Under the agreement with the Europeans, there must be "objective guarantees" that Iran's nuclear program "is exclusively for peaceful purposes." In exchange, the Europeans must provide "firm guarantees on nuclear, technological and economic cooperation and firm commitments on security issues."

Specifically, Iran agreed to suspend "the manufacture and import of gas centrifuges and their components," all work on plutonium separation and the construction or operation of any plutonium separation installation, and "all tests or production at any uranium conversion installation."

Last year's agreement said nothing about the production and assembly of centrifuges, which are used to enrich uranium, and when inspectors from the United Nations agency caught Iran building them, the Europeans felts duped.

The agreement also commits both sides to combating terrorist activities, including those of Al Qaeda and the Iranian opposition group known as the People's Mujahedeen.

Once the suspension of enrichment is verified, the European Union will restart negotiations on a trade and cooperation agreement with Iran. It will also "actively support" negotiations for Iran to enter the World Trade Organization, a move that the Bush administration has blocked and can continue to block.

Iran's leadership has steadfastly held to the position that Iran is not engaged in a nuclear weapons program but has the sovereign right to enrich uranium. So as a face-saving gesture, the agreement says Iran's suspension of enrichment activities "is a voluntary confidence-building measure and not a legal obligation."

Hassan Rowhani, Iran's chief negotiator on nuclear issues, reiterated that point in a news conference in Tehran on Monday, calling uranium enrichment "Iran's right," and adding that "Iran will never give up its right to enrich uranium."

He also said the suspension during negotiations for the incentives package "will be a matter of months, not years," an assertion that the Europeans immediately rejected.

"Suspension must remain in force until the I.A.E.A. gives Iran a clean bill of health," said one European official. "If the suspension is lifted the process is deemed to have broken and we, the Europeans, will withdraw and go to the Security Council."

Making concessions on its nuclear program has been widely unpopular inside Iran, and Mr. Rowhani was put on the defensive by conservative Iranian journalists.

When a reporter for the official Islamic Republic News Agency remarked, "The reason Iran has given so many concessions is because the Iranian team was weak," Mr. Rowhani replied that the country's best diplomats had conducted the negotiations and "this is the outcome of our best diplomacy."

Another Iranian journalist cited an interview in an Iranian newspaper that accused Iran of giving "a pearl in exchange for a lollipop."

"That's not true," Mr. Rowhani shot back.