The United Nations nuclear agency says Iran is pressing ahead with uranium enrichment work while it considers an incentives package from world powers to suspend the sensitive activity.
The International Atomic Energy Agency says in a report Iran is installing more equipment to expand its enrichment operations. The report was circulated among the agency's members Thursday ahead of an IAEA board meeting next week.
The United States says Iran must suspend all enrichment activities in order to accept the international incentives package and return to multilateral nuclear talks.
Iranian President Mahmoud Ahmadinejad says his country is willing to negotiate about "common concerns" and to clear up "misunderstandings in the international arena." But he says Iran will not give up its right to advanced technology.
British Prime Minister Tony Blair said Thursday that last week's U.S. offer to take part in those talks is a big step that shows Washington wants to find a diplomatic solution to the nuclear issue.
The incentives package offered by the United States, Britain, France, Russia, China - the five permanent U.N. Security Council members and Germany reportedly includes international support for Tehran's effort to build a power plant running on nuclear energy. The U.S. would agree to drop some trade sanctions and allow Iran to buy spare parts for its aging fleet of American-made aircraft.
The United States and Europe are concerned that Iran has a secret nuclear weapons program. Tehran denies seeking such weapons.
Some information for this report was provided by AFP, AP and Reuters.







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