US says Iran reply falls short of demands

WASHINGTON, Aug 23 (Reuters) The United States today said that Iran's response to a package of incentives offered from world powers fell short of a UN Security Council demand that Tehran abandon enrichment activities.

In the first US response to Iran's reply, spokesmen at the White House and State Department said the United States was consulting closely with other members of the Security Council over what the next steps should be.

''The response however, falls short of the conditions set by the Security Council, which require the full and verifiable suspension of all enrichment-related and reprocessing activities,'' said State Department spokesman Gonzalo Gallegos.

Iran yesterday handed over its formal response to a nuclear incentives offer from major powers and said it contained ideas that would allow serious talks about its standoff with the West to start immediately.

But Tehran gave no sign of heeding a key United Nations Security Council demand that it freeze uranium enrichment by August 31 or face the prospect of sanctions.

Gallegos said the United States would review Iran's response but he reiterated the demand that Iran give up its enrichment activities.

REUTERS VJ BST0022