Iran may agree to longer nuclear suspension

VIENNA, Mar 6 (Reuters) Iran may agree to extend its proposed moratorium of industrial-scale production of nuclear fuel if it is permitted to run a small-scale enrichment research programme, a diplomat close to the Iran-EU talks said today.

''Iran is ready to compromise on the period of suspension, if it can keep its nuclear research activities,'' a diplomat close to the talks told Reuters. On Friday, Iran said it could delay industrial-scale enrichment for up to two years, but the EU wants a 10-year moratorium on all enrichment activities.

France, Britain, Germany and the United States have so far rejected the idea of Iran running a small enrichment research programme. However, Russia and UN nuclear watchdog chief Mohamed ElBaradei are pushing the West to allow Iran to continue with small-scale work.

Of the three leading European powers, Germany is the one that ''could most live with a pilot enrichment plant in Iran,'' a European diplomat close to the talks with Iran told Reuters.

However, he played down the possibility of Iran splitting European ranks, saying that Germany would never break with the positions of the French and British, who oppose allowing Iran a small-scale enrichment programme.

''The point is finding a solution that enjoys consensus,'' the diplomat said.

The International Atomic Energy Agency chief said today he hoped a deal to defuse a standoff over Iran's nuclear ambitions could be reached soon, as the IAEA board met in a possible prelude to UN Security Council action.

REUTERS CH PC2201