Friday, March 31 2006 10:16 Hrs (IST) - World Time -

Berlin: Iran refused yesterday (Mar 30, 2006) to comply with a UN Security Council demand for an end to uranium enrichment, defying major powers which fear Tehran secretly wants an atomic bomb.

"Iran's decision on enrichment, particularly research and development is irreversible," Iranian ambassador to the International Atomic Energy Agency (IAEA) Aliasghar Soltanieh in Vienna told agencies.

Foreign Minister Manouchehr Mottaki, speaking in Geneva, described the UN declaration as an 'angry precedent' and a 'bad move'.

Iran struck the defiant stance even as foreign ministers of the Security Council permanent members plus Germany met in Berlin to chart their next moves in the standoff.

The UN Security Council on Wednesday unanimously approved a non-binding statement giving Iran 30 days to abandon its uranium enrichment activities, ending a weeks-long impasse.

"This is a strong sign to Iran that negotiation not confrontation should be their course," US Secretary of State Condoleezza Rice said.

"It is now up to Iran to make a choice between isolation brought about by its own actions or a return to the negotiating table," added German Foreign Minister Frank-Walter Steinmeier, the meeting's host.

But cracks appeared between the major powers here over how to act if Iran does not comply. The UN statement leaves open what consequences might follow if Tehran does not halt uranium enrichment, and Russia and China insisted that economic sanctions or military action did not belong on the table.

"Russia does not believe that sanctions would serve the purpose of settling the various issues," Russian Foreign Minister Sergei Lavrov said.

In a clear warning against any the use of force to settle the standoff, Chinese Deputy Foreign Minister Dai Bingguo said that any such move would unleash chaos in the region.

"The Chinese side feels there has already been enough turmoil in the Middle East and we do not want to see more turmoil introduced into the region," he said.

The UN talks had been marred by differences between the US and its allies on the one hand and Russia and China on the other over how to coax Tehran away from uranium enrichment.

The statement that finally prevailed is a watered-down version of a Franco-British statement that calls on Iran to meet demands from the UN nuclear watchdog, the IAEA.

It expresses clear concern that Iran is trying to acquire nuclear weapons secretly, demands that Iran comply with the wishes of the IAEA governing board and calls for an IAEA report within 30 days.

The non-binding UN Security Council declaration was seen as a bid to placate Russia and China, which have opposed any hint of punitive measures against Iran, an ally and key trading partner.

In a further concession, the co-sponsors extended the deadline to 30 days from the 14 days they had initially sought.

It is unclear how the crisis will unfold if Iran refuses to buckle before the 30 day deadline is up.

Mottaki, speaking to the UN Conference on Disarmament in Geneva said, Iran would formally offer to set up a 'regional consortium' to enrich fuel for its nuclear programme, implying that it would be set up in Iran.