In Nuclear Stalemate With Iran, EU Cautiously Weighs Options

Adam Cohen, Dow Jones Newswires:

Two years of talks aimed at keeping Iran from developing nuclear technology that could be used to build a bomb are "basically in the rubbish bin," a senior European Union diplomat said yesterday.

The diplomat said that while there were now few options left, any decision to refer Iran to the United Nations Security Council -- a move that could result in economic sanctions -- would have to wait at least until the board of the U.N.'s nuclear watchdog, the International Atomic Energy Agency, meets on Sept. 19. A referral could lead to sanctions against Iran. READ MORE

The London-based International Institute for Strategic Studies yesterday reported that Iran is still several years away from building a nuclear bomb. But the EU diplomat said Iran's nuclear progress remains worrisome.

The U.S. and Europe are convinced that Iran's nuclear program is less than peaceful. Iran restarted its nuclear-enrichment facility near Isfahan last month after almost a year of inactivity during negotiations with Europe. Iranian officials say the country is developing nuclear power to cut its reliance on oil.

Russia is building Iran's lone nuclear-power plant at Bushehr, on the Persian Gulf, but that facility will be fueled by special Russian-made nuclear fuel. In other cases, investigators have been blocked from seeing nuclear facilities for months only to find them bulldozed and suspiciously clean.

"If this program is peaceful, where are the nuclear plants?" the diplomat asked. "We have to recall that this was a secret, a clandestine program operated for 15 years."

Despite its convictions, Europe isn't ready to push for U.N. action. Russia and China both have seats on the Security Council and could veto any action led by the U.S. or Europe.

Russia's deputy foreign minister Monday said the country would oppose U.N. action against Iran. The EU diplomat, however, said discussions were continuing with both Russia and China "at the highest levels."

The EU and the three countries involved in the negotiations offered to develop and supply nuclear technology for an Iranian nuclear-power plant and offered a range of other economic and political incentives. In exchange, Iran would have to stop nuclear enrichment, a process that can be used for civilian or military means.

Write to Adam Cohen at adam.cohen@dowjones.com