US reacts warily to Iran overture on talks

WASHINGTON, May 30 (Reuters) The White House today gave a guarded welcome to Iran's offer to resume nuclear negotiations with the European Union but expressed skepticism at any prospect for direct talks between Tehran and Washington.

As diplomatic activity heated up, President George W Bush spoke to three key players in the nuclear standoff, Russian President Vladimir Putin, French President Jacques Chirac and German Chancellor Angela Merkel. A US official declined to say whether they discussed Iran.

Iran today said it told EU powers Britain, France and Germany it wanted renewed dialogue and that it could even talk to the United States, after a 26-year official freeze, if its arch-foe ''changed behavior.'' ''We're glad they're going back to the EU-3 talks and we hope they produce productive results,'' White House spokesman Tony Snow told reporters. ''We've always been clear on the end state which is that ... we want Iran to suspend all enrichment and reprocessing activities. And we wish them success.'' Snow, asked whether new talks could bring progress, said: ''The first thing we've got to do is get a change of Iranian behavior ... And we haven't seen anything yet.'' He said previous Iranian overtures had not borne fruit.

''There have been a number of occasions where the Iranians have signaled some willingness to negotiate and have pulled the rug out,'' he said. ''When there was conversation about two-party negotiations simply about Iraq ... the Iranians bailed out.'' Iranian Foreign Minister Manouchehr Mottaki, speaking after a meeting of nonaligned states in Malaysia, told reporters.

''For the time being, we have suspended direct talks (with the United States). After a change of their behavior we may consider again.'' He said Iran was open to talks with other parties but would not accept any preconditions.

Washington and its allies suspect that Iran, which sits on important fossil fuel reserves and is the world's fourth largest oil exporter, is trying to develop nuclear weapons. The UN Security Council has demanded that Tehran stop uranium enrichment. Iran has refused, saying it seeks nuclear energy only for electricity.

The five Security Council permanent powers and Germany will meet in Vienna on Thursday in hopes of finalizing a package of incentives for Iran to halt enrichment along with penalties if it keeps defying international pressure, officials said.

Iran has vowed that nothing will dissuade it from having full-fledged nuclear technology on its soil.

The United States, Britain, France, China, Russia and Germany aim to wrap up a ''carrots-and-sticks'' package for Iran at Thursday's meeting of foreign ministers in Vienna.

Russia and China, two of the five veto-holding Security Council powers, have balked at a Western thrust to brand Tehran a ''threat to international peace and security''.

Reuters VJ VP0045