US, Europe Aligned on Iran Nuke Incentives

Germany, France and Britain joined the United States and the United Nations nuclear watchdog on Wednesday in calling on Iran to show more transparency regarding its nuclear activities.

The three European Union countries, which have been negotiating with Iran to stop its uranium enrichment program in exchange for trade and security benefits, issued a joint statement to the board of the International Atomic Energy Agency (IAEA) in Vienna. The IAEA had reported key areas where Iran was refusing to cooperate with UN inspectors.

"While transparency visits have taken place, Iran seems to have been determined to limit their scope," said British ambassador Robin Wright, reading from the joint statement.

The Europeans still took a more conciliatory tone than the Americans. They noted that Iran's decision to suspend uranium enrichment -- which can be used for either nuclear energy or to make atomic weapons - was "a voluntary commitment" and urged Tehran to keep its word.

The US maintains that Iran's nuclear activities are designed for a clandestine weapons program. The head of the US delegation to the IAEA board, Jackie Sanders, cited "an alarming number" of unresolved questions and warned that the IAEA could not put off "forever" taking Tehran before the UN Security Council for possible sanctions.

Refusal of inspections causes friction

Like the US, the Europeans criticized Iran for refusing to allow UN inspectors to visit its military site in Parchin, a site where there are definitely nuclear materials, where Washington accuses Tehran of simulating testing of nuclear weapons.

The Iranian delegate to the IAEA, Cyrus Nasseri, said Iran was not allowing a second visit to Parchin, after a first one in January, in part because it was concerned about information leaks "in view of potential threats of military strikes against Iran's safeguarded and other facilities" by what he called "a major nuclear weapons state" in a clear reference to the United States.

But IAEA Director-General Mohamed El Baradei said that Iran was a "special case" since its nuclear program "has been clandestine for almost two decades" and he asked Tehran to allow widespread visits by UN inspectors. The Europeans endorsed El Baradei's call for Iran to come clean "in order to make up for the confidence deficit created by past activities and to build the necessary confidence in the future," the European statement said.

US President George W. Bush has said Washington is seeking a diplomatic solution in Iran and supports EU talks with Tehran. But Bush has said all options, including the military one, remain on the table.

Bush considers dangling the carrot

However, it appears that the president is increasingly aligning himself with European efforts and is considering offering incentives to Iran, according to US officials on Thursday. In a preparatory statement ahead of an expected announcement of the US strategy later this week, the United States said it would not block Iran as it seeks to start the process of joining the World Trade Organization (WTO), and would not stand in the way of European allies if they want to sell Tehran parts for civilian aircraft.

White House spokesman Scott McClellan said the president had not finalized his decision but said that the United States and Europe were discussing "how we can move forward together on a common strategy to get Iran to abandon any ambitions for a nuclear weapon."

"We want to do our part to support the European efforts. This is about strengthening their diplomatic approach to resolving this matter," he added.

In return for supporting incentives, it is likely that the Americans would insist that Iran abandon uranium enrichment, the major sticking point in the on-going negotiations. But while it appears that the US has shifted considerable ground, the reality is a little different. The Europeans and the Americans would get the better end of the deal if Iran accepts the incentives.

WTO accession a one-sided deal?

"It is a carrot, and it's not a very big one," a senior congressional aide involved in the WTO issue was quoted as saying by Reuters. Membership of the WTO can take years after a country has been granted observer status, the first stepping stone to full accession.

Iran would have a stipulated five years after observer status is achieved to begin the process of moving toward full membership and actual entry into the WTO can take many more after that. However, negotiations on Iran's membership could be strung out indefinitely by the US, binding the Iranians to years of concessions over its nuclear program.

If the Iranians see through this and refuse to accept the incentives, maintaining their efforts to enrich uranium, then the US would resort to its original course of action which would be to take Iran to the UN Security Council for possible sanctions.