Iran ignored incentive offer at EU talks-diplomats

VIENNA/BRUSSELS, July 13 (Reuters) Iran ''beat around the bush'' at talks with the EU on an offer of incentives to curb its nuclear work, refusing to even discuss it and casting doubt on Western motives, diplomats said today.

Six major powers agreed yesterday to refer Iran's case back to the UN Security Council after Tehran failed to respond to their five-week-old proposal to it to stop enriching uranium in exchange for trade and diplomatic sweeteners.

Diplomats said the decision was driven by exasperation over Iranian chief nuclear negotiator Ali Larijani's failure to refer to the offer in Tuesday talks with EU foreign policy chief Javier Solana after weeks of calls on Iran to signal yes or no.

''Larijani did not mention nuclear issues at all, he just got long and complicated, and complained and beat around the bush, avoiding the tough issue at hand,'' said one Vienna-based diplomat given a summary of the meeting's results.

''(He kept asking), 'Are you really after regime change in Iran or do you want a fundamentally new relationship with us? There was no clear sign Iran is interested in negotiations.'' Going into the talks, Iranian officials had said repeatedly that they need clarification of the proposal.

''It was an empty negotiating session. The Iranians didn't ask anything (about the package) but made long statements complaining about the level of trust,'' said another diplomat close to the matter.

SUSPICIONS The West suspects Iran wants to enrich uranium to produce atomic bombs. Iran says it seeks only nuclear-generated electricity and vows to expand its pilot enrichment programme.

The first diplomat said the six powers -- the United States, Russia, China, Britain, France and Germany -- might publish the incentives package, until now only revealed in parts by leaks, within the next few days to pressure Tehran.

France said after yesterday's foreign ministers' meeting they had agreed to draw up a U.N. Security Council resolution ''in a few days'' ordering Iran to stop sensitive atomic work.

''There will have to be a deadline for compliance attached to this resolution. It's only logical,'' said the first diplomat.

If Iran refused by mid-August, another resolution would be proposed under an article of the UN charter that allows for economic sanctions but not armed force, French officials said.

''However, we remain a long way off from sanctions, because China and Russia don't want sanctions and don't want to even talk about them. They are hesitant even now to go back to New York,'' said the Vienna-based diplomat.

Russia and China, which both have commercial interests in Iran, are not expected to back tough measures against Tehran.

The second diplomat, speaking in Brussels, said the EU did not expect further contacts with Iran to resolve the dispute but could not rule them out.

REUTERS KD HS2140