Iran nuclear inspections "positive step"-UN's Ban

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UNITED NATIONS, Oct 28 (Reuters) - U.N. Secretary-General Ban Ki-moon on Wednesday praised Iran for its decision to allow U.N. nuclear inspectors access to a recently disclosed nuclear enrichment plant in the Islamic Republic.

"The inspection of the new Iranian enrichment site in Qom, conducted by the International Atomic Energy Agency (IAEA) this week, is a positive step," Ban told reporters.

"Meeting with President (Mahmoud) Ahmadinejad in September, I urged Tehran to take this step and cooperate fully with the IAEA on all outstanding issues."

He also welcomed a draft agreement circulated by the IAEA which would have Iran ship most of its low enriched uranium stocks to Russia and France to turn it into fuel for a reactor in Tehran that produces medical isotopes for cancer treatment.

Ban made clear he hoped Iran, which has signaled its reluctance to send its uranium stockpile abroad, would accept the proposal.

"Agreement would constitute an important confidence-building measure and could set the stage for further advances in the negotiations between Iran and the EU3+3," he said.

Ban was referring to Iran's negotiations with Britain, France, Germany, the United States, Russia and China in which the six powers are attempting to persuade Tehran to suspend its enrichment program in exchange for economic and political incentives.

Iran is expected to give its response to the proposal on Thursday in Vienna.

Tehran, which rejects Western allegations that it has a covert nuclear weapons program, has so far refused to halt a program it says is peaceful and will only produce electricity, not bombs. (Reporting by Louis Charbonneau and Michelle Nichols; Editing by Vicki Allen)