Iran vows to resume uranium conversion this week

TEHRAN -- Iran insisted yesterday that it would resume uranium conversion this week after rejecting European Union incentives to end its nuclear fuel work, and said it was not worried about possible UN sanctions.

''Although we think referral of Iran's case to the Security Council would be unlawful and politically motivated, if one day they refer Iran's case . . . we won't be worried in the least," said a Foreign Ministry spokesman, Hamid Reza Asefi.

Britain, Germany, and France, which are heading nuclear negotiations with Iran for the EU, have called an emergency meeting of the International Atomic Energy Agency's board of governors for tomorrow to discuss Iran's uranium conversion case.

The three EU countries, known informally as EU3, say they will recommend referring Iran to the Security Council if it goes ahead with plans to break UN seals and to resume work at the Isfahan uranium conversion plant.

On Saturday, Iran rejected an EU package of economic and political incentives designed to persuade it to halt nuclear fuel work for good. Yesterday, it said it would restart the Isfahan plant as soon as surveillance equipment from the IAEA is in place.

''The European proposal has no value," state television quoted Foreign Minister Kamal Kharrazi as saying. ''We will insist on our rights, and have decided to resume Isfahan activities as the first step of our measures. This does not mean we will stop negotiations with Europe."

The German chancellor, Gerhard Schroeder, said Iran faces economic sanctions if it refuses to accept the EU proposals. ''I don't think anyone . . . is thinking about a military confrontation," he said.

''If Iran doesn't back down, one has to expect it will be referred to the Security Council," Schroeder said. ''If that happens, we will be talking about possible sanctions. This would not be good for either side. Therefore, I have to say I am very worried by Iran's apparent decision to choose a course of confrontation."

Asefi, speaking at a weekly news conference, said IAEA technicians would be at the Isfahan plant today to install additional cameras.

He said the EU proposal, which contained an offer of help with developing a civilian nuclear program, was rejected because it did not recognize Iran's right to enrich uranium. Iran's official reply will be delivered to the EU today.

''I suggest that the Europeans avoid the language of threat," Asefi said. ''The only way is to encourage Iran and respect its rights."

Iran says its nuclear program is designed to produce electricity and is not a cover for making atomic bombs.