IAEA suspends some nuclear aid to Iran

VIENNA, Jan 17 (Reuters) The International Atomic Energy Agency has suspended some technical aid projects in Iran to comply with new UN sanctions imposed on Tehran over suspicions it may be trying to make nuclear weapons, diplomats say.

The West wants an IAEA review of aid for Iran's civilian nuclear energy programme to cut many of the 65 projects but face resistance from a developing nation bloc to which Iran belongs. This has raised tensions within the U.N. watchdog agency.

Findings from the review will be presented to the 35-nation IAEA governing board next month for a probable vote at its next scheduled meeting in March. But some projects had already been provisionally shelved, Western diplomats said today.

''Projects that are in the view of the (IAEA) Secretariat definitely not compatible with U.N. Resolution 1737 have been put on hold already,'' said an EU diplomat, who attended a briefing by the IAEA's technical aid director this week.

''(The Secretariat) has also drawn up a preliminary list of projects that can be continued and is completing an assessment of those more difficult to assess, the ones with a more hybrid character, or the ones where it boils down to proper interpretation and definition,'' said the diplomat.

IAEA officials would not say how many projects were blocked or which ones, said the diplomat, who declined to be identified.

A senior source within the IAEA confirmed the development.

IAEA spokeswoman Melissa Fleming said: ''We're doing a very thorough examination of all projects. It's not a straightforward (picture) as the projects involve things like training courses.'' No immediate comment was available from Iranian officials.

The Islamic Republic was hit with preliminary sanctions over its failure to prove to the IAEA that experimental efforts to enrich uranium are geared solely to generating electricity as it maintains, rather than building bombs as the West suspects.

The December 23 UN resolution prohibits transfers of sensitive nuclear materials and know-how to Iran as well as IAEA aid, traditionally given to bolster peaceful uses of nuclear energy, if it has any possible use in producing atomic fuel.

BATTLET Until last month the IAEA had about 20 aid projects specifically for Iran and more than 40 ''regional'' packages collectively for Iran and neighbouring countries.

The IAEA runs some 800 or so such projects round the world, worth a total of about 80 million dollars, though the value is reckoned to be less in cash terms than in the expertise it brings to member countries seeking nuclear energy for development.

Many entail work in radio-isotopes for medical care and agriculture, radioactive waste management, nuclear power planning and nuclear safety regulations.

The last three categories, at least, could be interpreted to be supportive of nuclear fuel production, many diplomats said.

Exactly how broadly to apply the definition of banned projects is the subject of a brewing battle between Western and the Non-Aligned Movement (NAM) of developing nations on the Vienna-based IAEA's board.

Developing nations oppose what they regard as increasing US-European efforts, spurred by doubt over Iran's intentions, to ''micro manage'' technical aid that has long been routine.

Another complication is dissent among Western nations on the board on how tough to get with Iran, several diplomats said.

They said the United States, Australia and France believed at least half of the aid projects should go.

''This group wants grey area projects on the blacklist,'' said a Western diplomat who attended in briefings.

But Germany, now holding the European Union presidency, Italy and many smaller EU states preferred smaller cuts, hoping this would help coax Iran towards a compromise and reduce the risk of driving Tehran into a corner, possibly provoking it to bar IAEA inspectors and even quit the Non-Proliferation Treaty.

''This group wants a more nuanced than black-and-white approach, believing the challenge now is how to re-engage Iran,'' said another European diplomat who was at briefings this week.

''There are some projects that obviously have to be frozen because they can be associated with enrichment, but the majority of projects will go through,'' said a senior NAM diplomat.

Those advising restraint for now point to Iran's retreat from threats to bolt from the NPT if hit with sanctions, a fresh promise to preserve basic IAEA inspections, and apparent hesitation to pursue plans for ''industrial-scale'' enrichment.

Reuters AB DB2239