Thursday, August 24 2006 10:58 Hrs (IST) - World Time -

Washington: The US has said that Iran's response to the package of incentives aimed at ending Tehran's suspected nuclear programme 'falls short' of the UN demand for halting uranium enrichment.

The State Departtment said it was studying Iran's offer of negotiations and would consult further with other UN Security Council members on next course of action.

"We acknowledge that Iran considers its response as a serious offer, and we will review it" acting spokesman of the State Department, Gonzala Gallegos, said in a statement.

"The response, however, falls short of the conditions set by the Security Council, which require the full and verifiable suspension of all enrichment-related and reprocessing activities. We are consulting closely, including with other members of the Security Council, on next steps," it said.

The White House said the matter was "serious" and that Washington will wait until the five permanent members of the UN Security Council plus Germany meet on August 31.

"This is a serious matter, and we're going to seriously consider it. And the P5 plus one will get together and they're going to be talking between now and August 31st," White House Deputy Press Secretary Dana Perino said during the briefing.

The statement was issued after a meeting between President George W Bush and Secretary of State Condoleezza Rice.

Bush had a telephonic conversation with UN Secretary General Kofi Annan, where is believed to have discussed the Iranian response.