Iran says needs time to review atomic 'timeout'

TEHRAN, Jan 28 (Reuters) Iran said today it needed time to review a suggestion by the head of the International Atomic Energy Agency for a 'timeout' under which Iranian nuclear work and UN sanctions would be suspended together.

''Iran needs time to review such an initiative to see whether it has the capacity to resolve Iran's nuclear issue,'' Iranian chief nuclear negotiator Ali Larijani said when asked about the 'timeout' proposal.

''Iran's nuclear issue is a multi-faceted issue and we cannot say yes or no to such a suggestion. Such a suggestion should be developed,'' Larijani told a news conference with visiting Russian Security Council Secretary Igor Ivanov.

UN atomic watchdog chief Mohamed ElBaradei told a Davos forum that military action against Iran's nuclear sites, which Washington has not ruled out, would be crazy and the two sides should stop flexing muscles and start direct dialogue.

The West accuses Iran of seeking to build atomic bombs, a charge Tehran denies, saying it only wants to make electricity.

''ElBaradei's initiative to have a 'timeout' can be considered, and through this suggestion a political solution can be found for this (nuclear) issue,'' Ivanov said.

UN sanctions have been slapped on the Islamic Republic for its failure to suspend uranium enrichment, a process which can be used to make fuel for power stations or material for bombs.

The United States has said it wants diplomacy to resolve the standoff but has not ruled out military action if that fails.

REUTERS SP KP2242