Iran, IAEA see progress in atomic programme talks

TEHRAN, Aug 21 (Reuters) Iran and the International Atomic Energy Agency both said today they had made progress in talks about Tehran's offer of more transparency aimed at defusing a row over the Iranian nuclear programme.

After two days of talks in Tehran, the two sides also said they had agreed a timeline on answering outstanding questions about Iran's nuclear ambitions, which the West believes is aimed at building atomic bombs under cover of a civilian programme.

Iran insists its plans are entirely peaceful.

''We have in front of us ... a work plan. We agreed on modalities on how to implement it. We have a timeline for the implementation,'' IAEA deputy director Olli Heinonen said after the talks which he said were ''good, constructive''.

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.

''We have a basic framework of agreement between Iran and the agency,'' Iranian deputy nuclear negotiator Javad Vaeedi told a joint news conference saying talks yielded ''great results'', according to a translation of his words by Iran's PRESS TV.

The United States, leading efforts to isolate Iran, has said Tehran must halt sensitive nuclear activity as well as cooperate with the IAEA if it wants to avoid tougher sanctions.

The latest talks were due to tackle some of the thorniest 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.

Iran and the IAEA previously held talks in July and earlier this month. After the July talks, Tehran allowed UN inspectors to revisit the Arak heavy-water reactor under construction.

Tehran had cut off access in April in protest at UN sanctions.

The United Nations has imposed two sets of sanctions since December because of Iran's failure to halt uranium enrichment, a process which can make fuel for power plants or bomb material.

Reuters CS VP0112