BERLIN - Iran should be allowed to enrich uranium for power generation provided there is close monitoring by U.N. inspectors to ensure it is not trying to develop atomic weapons, Germany's defence minister said.
The minister's comments may suggest that after years of failed negotiations with Iran, Germany and some other Western powers are willing to compromise with Iran over enrichment in order to resolve peacefully the nuclear stand-off with Tehran.
But it was clear that this view was unacceptable to Washington, which contacted the German government to clarify it.
In an interview with Reuters this week, Defence Minister Franz Josef Jung was asked if Iran should be allowed to enrich uranium under the scrutiny of the Vienna-based International Atomic Energy Agency (IAEA).
He said: "Yes, I think so. The offer includes everything. That means the civilian use of nuclear energy is possible but not atomic weapons. And monitoring mechanisms must be applied. I think it would be wise for Iran to accept this offer," he said.
Jung was referring to a June 6 offer of incentives made to Iran by Germany and the five permanent U.N. Security Council members -- the United States, Britain, France, China and Russia.
U.S. State Department spokesman deputy spokesman Adam Ereli denied any there were any divisions among the major powers. He said that the German government had been contacted about the interview and told Washington "this is an erroneous story".
German government spokesman Ulrich Wilhelm said in a statement to Reuters that it stood firm with the five council members on the issue of Iran and reiterated that Berlin wanted Iran to suspend enrichment in order to enable negotiations on the offer to take place.
"It's up to Iran, through a suspension of enrichment, to create the conditions for negotiations and win back international trust," Wilhelm said.
"Nothing has changed regarding the position of the six countries and the German government," he said.
The issue of Iran's nuclear ambitions will dominate a meeting of foreign ministers from the Group of Eight (G8) industrialised nations in Moscow on Thursday. The ministers aim to decide how best to nudge Iran to respond to the offer.
Jung did not mention any timeframe when Iran -- which has been enriching uranium for months on a small scale -- could be permitted to make nuclear fuel with the West's blessing. But he said close IAEA oversight would be sufficient to show the world whether Tehran's nuclear programme was as peaceful as it says.
"IAEA inspections can provide those assurances through monitoring. That is not a problem," he said.
Jung, a member of Chancellor Angela Merkel's conservative Christian Democrats, said he understood U.S. reservations but added that a ban on Iranian enrichment work was unrealistic.
"One cannot forbid Iran from doing what other countries in the world are doing in accordance with international law. The key point is whether a step towards nuclear weapons is taken. This cannot happen," he said.
An IAEA diplomat, speaking on condition of anonymity, said Jung's comments were a welcome surprise.
"If this position is not retracted or undermined by accusations of going-it-alone, then it's real news," the diplomat said. "If we all want a negotiated solution, this is the only realistic, sensible and reasonable way forward."
The package of incentives is conditioned on Iran forgoing large-scale uranium enrichment for the time being and answering outstanding questions about its programme.
In order to begin negotiations on the offer, the six powers have demanded that Iran temporarily halt all uranium enrichment -- including small-scale work -- but Iran has so far refused.
Tehran has yet to respond to the offer and the United States and Germany have called for an answer by the G8 summit in July.
Several EU diplomats have told Reuters that Germany would be willing to let Iran continue enriching uranium on a small scale if it responded positively to the incentives offer.
But they say Germany's official position had not changed and that Berlin would not break ranks with Washington and London if those capitals could not be persuaded to soften their positions.
"Realistic Way Forward"
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