http://www.reuters.com/article/newsOne/idUSL2138443120080122

Powers must close "gaps" for Iran sanctions deal

Tue Jan 22, 2008 10:41am EST

By Noah Barkin and Sue Pleming

BERLIN (Reuters) - World powers said they would have to overcome key
differences on Tuesday to agree on a new sanctions resolution against Iran
that aims to ratchet up pressure on Tehran to curb sensitive nuclear work.

Ahead of a meeting in Berlin of foreign ministers from the five permanent
U.N. Security Council members and Germany, U.S. Secretary of State
Condoleezza Rice said powers still had "some way to go" in agreeing a third
U.N. sanctions resolution.

The West has been engaged in a diplomatic showdown with Iran over its
nuclear program since 2002 and the Security Council has already imposed two
sets of mild sanctions -- the first in December 2006 and second in March
2007.

A new resolution could range from financial and investment freezes to travel
bans and an arms embargo.

"The political directors have made some progress," Rice said, referring to
envoys who have been trying to hammer out language on a new resolution that
is acceptable to all six countries. "I know there are still some gaps to
close."

The West suspects Iran is secretly pursuing an atomic bomb.

Iran, which says its nuclear program is for peaceful power generation, has
vowed that new sanctions will not stop it from pursuing its "legitimate and
legal right" to nuclear energy.

Washington has spearheaded a months-long drive for more punitive measures
and wants a new resolution to impose a ban on business with leading Iranian
state banks.

But Russia and China, both commercial partners of Iran, have hardened their
opposition to tougher sanctions since a U.S. intelligence report last month
said Iran had halted its nuclear weapons program in 2003.

PROGRESS

Host Frank-Walter Steinmeier said he hoped ministers from Britain, China,
France, Germany, Russia and the United States, who were due to meet at 4:30
p.m. (1530 GMT), would send Iran a signal about their concern over its
nuclear ambitions but also warned that success was not guaranteed.

"The fact that Russia and China are both here is a positive sign," the
German foreign minister told ARD public television.

"I can't promise we will come out of this meeting with an agreement on how
to proceed in the U.N Security Council, that we will agree on the text of a
resolution and I can't tell you what new sanctions will look like."

One European diplomat, however, said political directors had made good
progress in recent days and said there were legitimate chances of an
agreement.

A French source also voiced optimism that the ministers would seal a new
draft that could be forwarded to the United Nations in the coming days.

The foreign ministers last met to discuss Iran in September in New York and
have made little tangible progress since then.

International Atomic Energy Agency director Mohamed ElBaradei won agreement
from Iran this month to answer questions about its past covert nuclear work
within four weeks, but western diplomats say expectations are low that
leaders in Tehran will be forthcoming.

China said on Tuesday the nuclear standoff had reached a "critical moment".



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