http://news.monstersandcritics.com/energywatch/nuclear/features/article_1282
271.php/Iran_behind_in_nuclear_program

Iran behind in nuclear program
Mar 24, 2007, 9:08 GMT

WASHINGTON, DC, United States (UPI) -- If Tehran would have only focused on
building nuclear power plants, it would be able to export more of the oil
and natural gas it produces and avoid a growing confrontation with the U.N.
Security Council and the United States.

'I think that most people now understand that Iran is doing two quite
distinct things,' said Ian Hore-Lacy, director of public communications for
the London-based World Nuclear Association. 'One is it has a perfectly
legitimate nuclear power program for generating electricity.
And the second is that it is enriching uranium without any commercial
justification for that.'

The reactor Russia is building in Bushehr isn`t considered a proliferation
threat, but is still considered a possible but less likely target. The most
likely focus of bombing and U.N. sanctions is the enrichment facilities that
may have violated the nuclear nonproliferation treaty.

'The power program, by my sort of back-of-the-envelope arithmetic, ...
will pay for that reactor in about 2 1/2 years with the oil and gas that`s
freed up for export as a result of having it, which is a pretty good
payback,' Hore-Lacy told United Press International during a phone interview
from his office in Melbourne, Australia. Iran produces nearly
4 million barrels of oil per day, exporting more than half of it.
Despite having the second-largest reserves of natural gas, it lacks enough
investment to be a major exporter.

'They`ve devoted a huge amount of money and energy to this enrichment
program, without any evident commercial justification,' Hore-Lacy said.
'Obviously that money and energy could be put into building other reactors
or something like that. It`s obvious there`s an opportunity cost there.'

Instead of the half dozen nuclear reactors Iran has on the far-off drawing
board, Hore-Lacy said, they could be under construction or online.

'If Iran was in the sort of political mainstream with regard to its openness
and compliance with NPT obligations, yes it would be a very different ball
game,' he said.

Bushehr would be Iran`s first commercial plant. It was a project started by
the German firm Siemens but abandoned for lack of payment and the Iranian
Revolution in 1979. Russia signed a contract in 1995 and will deliver the
nuclear fuel and take back the waste, a factor in approval by the
International Atomic Energy Agency. (Recent dispute between the two
countries has stalled the project, with news reports that experts are
leaving Iran. Russia says Tehran is behind on payments; Iran says Moscow is
mixing business and politics.)

In 2002, a dissident unveiled a stealth nuclear program in Iran, bringing
immediate international attention. Tehran says it has the sovereign right to
a complete nuclear program -- including a full fuel cycle -- because it is a
signatory to the NPT. But the IAEA says Iran hasn`t been forthright enough
to determine its program is solely for energy purposes.

'It`s announced plans for about six but it hasn`t done anything about them
yet. It`s all words at this stage. We will see,' Hore-Lacy said. 'I wouldn`t
be surprised if they build more but it will take them many years to have
enough to justify having their own enrichment program.'

'The scale of the equipment they`re installing, and enrichment plants are
necessarily fairly large items, the scale of what they`re installing is
disproportionate to their foreseeable needs,' Hore-Lacy said.

And even demand for fuel doesn`t guarantee international acceptance of a
full cycle, Hore-Lacy said. Regardless, Iran isn`t making that pitch too
well.

'That would be the understatement of the week,' he said. 'The fact that the
darn thing`s been clandestine in contravention of Iran`s obligations under
the NPT for 19 years is the first sort of little stumbling block.
And the second is if you`re setting up a very expensive enrichment program
there you probably need it to be servicing about 50 reactors, not one.'

Hore-Lacy compared it to buying a car and 'then say `oh gee I better go out
and buy the service station down on the corner so that I can make sure that
I`ve got petrol for it.` Who would you expect to buy that story? But that`s
what Iran is trying to expect the world to believe in respect to what it
asserts is the peaceful purposes for that program.'

'It`s obvious from the IAEA and U.N. arena they haven`t convinced anyone,'
Hore-Lacy said.

Still, international nuclear agreements are no sure bet against
proliferation, since much of the nuclear technology and know-how to generate
electricity could be used to generate a bomb.

An attack on Iran 'would make aspiring countries more leery,' said Cliff
Kupchan, director of Europe & Eurasia for the business risk analyst Eurasia
Group. 'But we still face a broken regime, an NPT that basically allows a
country to get right to the cusp of developing a nuclear weapon legally' and
then break out into a weapons state.

Iran has spread out and buried its facilities, making it more capable of
surviving an attack, though it could cause other countries intent on a
similar program to reevaluate, especially if Bushehr is hit, said Jon
Wolfsthal, senior fellow at the Center for Strategic and International
Studies.

'If the United States were to demonstrate that it is prepared to bomb
ostensibly civilian facilities, facilities under (IAEA) safeguards, to which
Iran arguably -- I don`t make this argument -- but arguably has the legal
right to utilize, it does cast a major pall over the security of nuclear
facilities everywhere,' Wolfsthal said.


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