Saturday, June 17 2006 16:20 Hrs (IST) - World Time -

Washington: US Secretary of State Condoleezza Rice said that Iran's initial responses to an international proposal offering incentives for Tehran to end its nuclear programme appeared to be 'positive'.

"Certainly we have heard some positive (news) from the Iranians," Rice said Friday during a press conference with Italian Foreign Minister Massimo D'Alema.

Iranian President Mahmoud Ahmadinejad said in Shanghai Friday that his government would seriously consider the package put together by the five permanent members of the UN Security Council Britain, China, France, Russia and the US plus Germany.

The proposal also contains penalties Iran could face if it does not comply with international demands to come clean on its nuclear activities.

"There is a very positive proposal on the table for Iran, and I certainly hope that Iran is going to choose the path of cooperation," Rice said.

"The international community needs an answer so that we know if in fact the negotiating track is indeed one that is going to bear fruit," Rice said.

State Department spokesman Sean McCormack said the US expects Iran to formally respond to the proposal presented to them earlier this month by foreign policy chief Javier Solana within weeks, not months.

D'Alema urged the Iranians to regain the trust of the international community.

"We must have a position of trust toward the partners that we are speaking to, but of course we expect that when there are such significant signs of openness, we expect very clear answers and answers that are just as significant," he said.

Ahmadinejad was in Shanghai for talks with Chinese President Hu Jintao, who has resisted tough measures against Iran for failing to cooperate with the International Atomic Energy Agency, the UN nuclear watchdog.

"Generally speaking, the offering of the package is a step forward," he told reporters.

The US and its allies suspect Iran is using a civilian energy programme to develop nuclear weapons, allegations Iran steadfastly denies.