Iran sees 'high' chance of US talks on Iraq soon

TEHRAN, July 17 (Reuters) Iran's foreign minister said today his country saw a ''high possibility'' that a second round of talks between the United States and Iran on the issue of Iraqi security would take place in the ''near future''.

In the most high-profile meeting of the two foes in almost three decades, Iran and the United States held talks in May about the situation in Iraq. The two countries have not had diplomatic ties since shortly after Iran's 1979 Islamic revolution.

The comments by Foreign Minister Manouchehr Mottaki to reporters are the strongest signal yet that the Islamic Republic is prepared for another round of discussions.

''Iraqi officials requested Iran hold talks with the Americans and we asked them to tell the Americans to give their official request through the Swiss embassy,'' Mottaki said.

The Swiss embassy in Tehran handles US interests in the absence of an American mission. The United States cut ties with Iran in 1980 after Iranian students stormed the embassy and took US citizens hostage.

''Our view ... is positive on holding a second round of talks, and with a high possibility, a second round of talks will be held in the near future,'' Mottaki said.

Iraq said talks would take place.

''I can confirm that there will be a second round of talks in Baghdad soon. It will be at the ambassadorial level. Iraq will be there and the talks will be about Iraq's stability and security,'' Iraqi Foreign Minister Hoshiyar Zebari told Reuters.

Washington accuses Iran of fomenting violence in Iraq while Shi'ite Iran denies backing the insurgency and accuses Washington of igniting tensions between Iraq's Shi'ite and Sunni Muslims. Analysts say Washington and Tehran are both concerned about worsening violence, pushing them to agree to meet.

Iranian President Mahmoud Ahmadinejad said this month Iran was ready to help establish peace and security in Iraq and Zebari said at the start of July he was pressing Washington and Tehran to hold a second round of talks in Baghdad but that no date had been set.

Washington has been leading diplomatic efforts to isolate Iran over its nuclear ambitions, which it says is aimed at making an atomic bomb -- a charge Iran denies. But both sides say any talks on Iraq will not deal with other disputes.

Iran has rejected repeated UN demands to halt uranium enrichment, which is used to make fuel for power stations but also has military applications.

Iran, OPEC No 2 oil producer, says it needs its atomic programme to satisfy its booming electricity demand.

REUTERS SKB KN1854