Tuesday, March 7 2006 16:14 Hrs (IST) - World Time -

Beijing: China today(Mar 7,2006) urged Iran to cooperate 'closely' with the UN nuclear watchdog IAEA over its controversial nuclear programme even as it said that all parties involved in the crisis should exercise restraint and display flexibility to find a diplomatic solution.

"We hope Iran will cooperate closely with the IAEA (International Atomic Energy Agency) and adopt more measures that are helpful to building confidence," Chinese Foreign Minister Li Zhaoxing said.

"There is still room for a settlement of the issue within the framework of the IAEA," Li said during his annual news conference on the sidelines of the Chinese Parliament session.

He called on all parties concerned to remain calm, patient and flexible to seek a diplomatic solution to the issue.

Li's call came after IAEA chief Mohamed El Baradei said he was hopeful of an agreement to ease Western fears about Iran's atomic programme at the start of a meeting yesterday in Vienna of the UN's top nuclear watchdog.

The meeting could decide whether to refer the Iranian nuclear issue to the UN Security Council which could then impose sanctions on Tehran.

Iran says its nuclear programme is meant to generate power, but Western governments worry that it is aimed at making atomic weapons.

China, which has veto power in the UN Ssecurity Council, last week sent its Vice Foreign Minister to Iran for 'political consultations' on bilateral ties, including the Iranian nuclear issue.