'Uranium enrichment purely for civilian use'

Shnghai, June 16 : Iranian President Mahmoud Ahmadinejad said a package of incentives and penalties aimed at inducing it to abandon its nuclear programmes was a positive step but gave no hint as to when he might formally respond.

He had asked colleagues to carefully consider the offer from the permanent members of the UN Security Council, along with Germany, and would give a response ''in due time'', Ahmadinejad told a news conference in Shanghai.

The West believes Iran's uranium enrichment could be used to make nuclear weapons, but Tehran insists it is purely for energy-generation and civilian use.

''Basically, we are not seeking to develop nuclear weapons,'' he said.

When asked about Israel's nuclear weapons capability, Ahmadinejad said: ''The Islamic Republic of Iran has developed the capability to defend itself.'' But Ahmadinejad, who previously has called for Israel's destruction, also said there were ''no differences'' between Jews, Christians and Muslims when asked about the Holocaust.

''All of them have their dignity and right to be respected,'' he said.

Ahmadinejad was in Shanghai has an observer to a Central Asian summit, but he has stolen the spotlight as the world awaits Iran's response to the package of incentives.

SANCTIONS LOOM If Iran rejects the package and sticks to its refusal to suspend uranium enrichment, Western powers could push for sanctions at the Security Council, action China and Russia have traditionally opposed.

''Sanctions should not be used as a leverage or pressure against the countries of the world,'' Ahmadinejad said.

Russian President Vladimir Putin discussed the nuclear dispute with Ahmadinejad yesterday, the foreign ministers of China and Iran also exchanged views on it, and Ahmadinejad met with Chinese President Hu Jintao earlier today.

''From the meetings we can feel that the Iranians are looking into this package solution proposed by the six countries seriously, and I think the Iranians might need some extra time,'' Chinese Foreign Ministry spokesman Liu Jianchao said late yesterday.

Some Western officials are starting to worry that Iran may drag out its decision past an unofficial July deadline in order to continue work on fuel enrichment.

Reuters