IAEA says Iran needs to do more but hopes for deal

VIENNA, June 12 (Reuters) The chief of the UN nuclear watchdog said today Iran was still resisting inquiries into its nuclear programme, but welcomed big powers' offer of major incentives to Tehran to resolve the crisis.

''It (is) clear that the agency has not made much progress in resolving outstanding verification issues,'' Mohammed ElBaradei said in a speech opening a meeting of the International Atomic Energy Agency's governing board.

ElBaradei welcomed efforts by six world powers, who last week offered Iran a package of incentives in exchange for it suspending its work on nuclear fuels.

''I remain convinced that the way forward lies through dialogue and mutual accomodation,'' he said.

REUTERS SHB DS1642