Germany, France threaten Iran with more sanctions

HEILIGENDAMM, Germany, June 8 (Reuters) Germany and France said today Iran would face another round of sanctions if it refuses to bow to UN demands that it suspend its nuclear enrichment programme.

Speaking at the conclusion of a Group of Eight summit, German Chancellor Angela Merkel urged Iran to think carefully about an offer of economic incentives in exchange for a suspension of uranium enrichment.

''Iran should think again about taking the offer we've made them instead of pressing ahead with their opaque enrichment activities,'' Merkel said of the offer made by Germany and the five UN Security Council members.

''Once again the answer will unfortunately be sanctions.'' As expected, the G8 members, including Russia, issued a statement saying they regretted the fact that Tehran had ignored three UN Security Council resolutions calling for a temporary halt to all uranium enrichment activity.

''If Iran fails to fulfil its obligations then adoption of further measures will be supported,'' the statement said. The wording ''further measures'' is widely interpreted to mean more sanctions.

The UN has already imposed two rounds of sanctions on Iran for failing to suspend uranium enrichment, a process of purifying uranium for power plants or weapons.

French President Nicolas Sarkozy echoed Merkel's words, saying it was necessary to make it clear to the Islamic republic that tougher sanctions may be on the cards.

''I think we will have to send a message of firmness, certainly of toughening sanctions,'' Sarkozy told reporters.

The United States has been urging the five other powers spearheading efforts to persuade Iran to abandon enrichment -- Germany, France, Britain, Russia and China -- to get to work on a new UN sanctions resolution.

But Merkel made it clear she only wanted to move gradually.

''We must move forward step by step,'' she said.

Iran denies Western allegations that it is developing atomic weapons, saying it only wants to generate electricity.

MERKEL CRITICISES IRAN'S PRESIDENT Merkel also joined France and Spain in condemning Iranian President Mahmoud Ahmadinejad's latest verbal attack on Israel -- that a countdown to Israel's destruction has been started.

''I find the statements of the president of Iran about Israel to be completely unacceptable,'' Merkel said.

In a separate statement on Sudan's Darfur region, the G8 said it would support ''further measures in the Security Council'' if the Sudanese government or rebels continued to ignore their obligations to halt all fighting.

The United States and Britain have both threatened Sudan's government with tougher U.N. sanctions if Khartoum does not support international efforts to end the conflict in Darfur.

International experts estimate 200,000 people have been killed in Darfur, though Sudan puts the toll much lower at about 9,000. The conflict has also forced 2 million more to flee their homes since 2003.

The G8 members are the United States, Britain, France, Germany, Italy, Canada, Japan and Russia.

REUTERS SBC RK2258