Iran's atomic claim to overshadow ElBaradei visit

TEHRAN, Apr 13 (Reuters) The head of the UN nuclear watchdog holds talks in Iran today on UN demands for a halt to uranium enrichment, discussions overshadowed by Tehran's plan to raise enrichment to an industrial scale.

The visit by International Atomic Energy Agency (IAEA) chief Mohamed ElBaradei comes less than 48 hours after Iran declared it had enriched uranium to a level used in nuclear power stations and would press ahead with large-scale production.

Tuesday's announcement by a triumphant President Mahmoud Ahmadinejad drew stinging rebukes from world powers, including Russia and China, while the United States said the UN Security Council, which could impose sanctions, must take ''strong steps''.

Iran says it will not back down from what it calls its national right to enrich fuel for civilian purposes and denies accusations by Western nations that it wants atomic bombs.

''It's wishful thinking to think Iran would shut down the nuclear process entirely now,'' a diplomat at the IAEA said in Vienna.

The IAEA chief is expected to meet top Iranian officials, but the diplomat said he was not expected to broker a deal.

''They have obviously achieved a significant advance at the research and development level and want to present it as a fait accompli to strengthen their bargaining position with the West,'' the diplomat added.

Iranian analysts echoed that view, saying Iran's nuclear enrichment capability could strengthen the country's hand.

''The (language) in negotiation with Mr ElBaradei is now very different from the past, before reaching this ability,'' said conservative political analyst Amir Mohebian.

Three European powers -- Britain, France and Germany -- had been in talks with Iran on suspending its enrichment work but called them off in January after Tehran said it would resume enrichment.

REPORT ON COMPLIANCE The Security Council has told Iran to halt all sensitive atomic activities and on March 29 it asked the IAEA to report on its compliance in 30 days, prompting ElBaradei's one-day visit.

Diplomats at the Security Council said the five permanent council members plus Germany would meet in Moscow next week alongside a Group of Eight meeting to discuss Iran.

The diplomats said the council was unlikely to take any substantive action until ElBaradei had made his report at the end of April.

The IAEA diplomat said ElBaradei would be briefed by IAEA inspectors on their findings at Iranian nuclear sites in the past few days, including their assessment of Iran's claim to have enriched uranium by 3.5 percent.

The level of enrichment needed for nuclear bombs is far higher than 3.5 percent and experts say it would take Iran two decades to produce enough highly enriched uranium for one bomb from its current cascade of 164 centrifuges.

But Tehran says it wants to install 3,000 centrifuges, which experts say could produce material for a warhead in one year.

An Iranian official said ElBaradei would meet Ali Larijani, secretary of Iran's Supreme National Security Council, and Gholamreza Aghazadeh, head of Iran's Atomic Energy Organisation.

REUTERS DH BD0610