Iran says way clear to atomic development

TEHRAN, Aug 21 (Reuters) Iran said the way was clear for its nuclear development while the United States stressed the need for sanctions against the Islamic republic today, the second day of talks between Tehran and the UN atomic watchdog.

The United States says Iran must halt nuclear activity the West suspects is aimed at making bombs as well as cooperate with inspectors from the International Atomic Energy Agency (IAEA), which seeks more access to Iran's nuclear facilities.

Iranian President Mahmoud Ahmadinejad made clear again his country would not bow to outside pressure and stop uranium enrichment, which Iran says is for making fuel for power plants but which can also provide material for weapons.

''The Islamic Republic has conquered the nuclear peaks,'' Ahmadinejad said in the northwestern city of Ardebil, the Fars News Agency reported.

''The enemies are not able anymore to cause obstacles for Iran's developments in the nuclear issue,'' he said.

Negotiators were due to announce the outcome of discussions between IAEA and Iranian officials at a news conference in the Iranian capital today. The time has yet to be announced.

Iran agreed in June to draw up an action plan within 60 days to grant more access to its nuclear sites for inspectors of the Vienna-based IAEA and clear up longstanding agency questions about the nature and scope of the programme.

The current talks led by IAEA deputy director Olli Heinonen and Iranian deputy nuclear negotiator Javad Vaeedi are to tackle thorny issues such as the origin of traces of highly enriched -- or bomb-grade -- uranium found on some equipment and the status of research into advanced centrifuges used in enrichment.

''WE DON'T TRUST IRAN'' Two previous rounds of talks were held in July and earlier this month. Iranian officials have described those discussions as positive and constructive.

Diplomats say Iran is showing signs of transparency to try to ward off the threat of broader UN penalties following two sanctions resolutions since December, mainly targeting individuals and companies linked to the nuclear activities.

But the United States, leading international efforts to isolate Tehran, insists it must also halt uranium enrichment as a precondition for suspension of sanctions and wider talks on trade incentives, something Iran has repeatedly refused to do.

''We intend to push it (tougher UN sanctions) very, very hard and we certainly will never agree that because Iran has some meetings with the IAEA, we should stop all of our efforts,'' US Undersecretary of State Nicholas Burns said.

''... We don't trust Iran. No one trusts Iran,'' he said in a radio debate on Monday.

Iranian chief nuclear negotiator Ali Larijani said on Monday Iran would retaliate if hit by more punitive measures, without describing a specific response. Iran has previously reduced cooperation with the IAEA when more sanctions were imposed.

Iran insists its atomic plans are aimed at making electricity so that it can export more of its oil and gas.

Ahmadinejad said Iran was ready to share its ''nuclear achievements with peace-seeking countries'', within IAEA rules.

REUTERS GT RK2256