Iran insists on atomic rights, wants talks

TEHRAN, Oct 19 (Reuters) Iranian President Mahmoud Ahmadinejad renewed his country's call today for talks to resolve a nuclear standoff with the West but said it would not retreat from its right to develop the nuclear fuel cycle.

Iran's file has been sent back the UN Security Council and it now faces possible sanctions after failing to meet a demand to halt uranium enrichment, a process the West believes Tehran is developing to build bombs despite Tehran's denials.

''Our nation does not want one iota more than its right,'' the president said on a televised speech to a rally in the town of Islamshahr, close to the capital Tehran, adding that Iran only wanted to develop nuclear technology for peaceful purposes.

''Our nation is in favour of talks and negotiations, but the world should know that the Iranian nation will not retreat one iota from its right,'' Ahmadinejad said, reiterating his position on the nuclear issue.

Western diplomats say Iran wants to string out talks to avoid taking action rather than to reach a deal.

Diplomats say France, Britain and Germany plan to put forward a draft Security Council resolution this week providing for graduated sanctions, though details have yet to be agreed.

Measures that have been suggested include travel bans on officials, diplomats and scientists, freezing assets of individuals and firms, and embargoes on the sale of items that could be used in Iran's nuclear and missile programmes.

Iran's chief nuclear negotiator Ali Larijani threatened retaliation yesterday -- possibly by suspending international atomic inspections -- if the United Nations imposed sanctions.

Iranian lawmakers say they are studying a bill that will oblige the government to halt inspections by the International Atomic Energy Agency (IAEA), which now carries out routine checks of Iranian facilities, if punitive steps are imposed.

Ahmadinejad did not make such a threat in his speech today. He said Iran had been cooperating with the IAEA.

The IAEA has said it still needs more information about Iran's nuclear programme before it can issue a clean bill of health.

Ahmadinejad is not the highest authority in the Islamic Republic.

The final say in matters of state lies with Supreme Leader Ayatollah Ali Khamenei but he has also said Iran will press ahead with its nuclear programme undaunted.

Reuters PB GC1925