Monday, August 21 2006 10:22 Hrs (IST) - World Time -

United Nations: UN Secretary General Kofi Annan has urged Iran to seize a 'historic opportunity' by responding positively to incentives offered by the EU in return for Tehran abandoning its uranium enrichment programme.

The UN Security Council had given Iran till August 31 to announce the abandonment of the programme with a threat to take unspecified measures if it fails to do so.

"Iran's reply will, I trust, be positive and that will be the foundation for a final, negotiated settlement," Annan said in a statement issued yesterday.

The proposal by the European Union, which was endorsed by United States, Russia and China, offers fuel for Iran's nuclear power reactor and other incentives to wean it away from its enrichment and reprocessing activities.

Iran maintains that its enrichment programme is purely for peaceful purposes but western nations suspect that it is geared towards Tehran's nuclear weapon programme.

Annan stressed that in a time of crisis in the Middle East, progress on the nuclear issue is essential for the stability not only of the region but also of the world.

"It is time to take steps in the right direction," he said.

"I am convinced that a way is now open for setting a milestone for international non-proliferation efforts." Noting that the EU plus 3 had reaffirmed Iran's right to develop nuclear energy for peaceful purposes, Annan said it was important for Iran to assure the world its intentions are peaceful and re-build confidence in its nuclear programme.

The Security Council had asked the International Atomic Energy Agency (IAEA) to report by August 31 on whether Iran has established full and sustained suspension of enrichment activities as well as on the process of Iranian compliance with all steps required by the IAEA Board.