Iran presses on with nuclear enrichment "non-stop"

By Zahra Hosseinian and Hashem Kalantari

TEHRAN (Reuters) - Iran is pressing on with uranium enrichment "non-stop", its envoy to the U.N. nuclear agency was quoted as saying on Saturday, despite a world powers' offer of economic incentives to coax Tehran into halting such activities.

The Islamic Republic also appeared to dismiss any suggestion of limiting nuclear work it says is for generating electricity but which the West suspects is aimed at making bombs.

Six major powers, including the United States, last week offered Iran help in developing a civilian nuclear program and other benefits in their latest attempt to resolve a long-running dispute that has helped pushed oil prices to record highs.

Iran's chief nuclear negotiator said Tehran was ready to start negotiations "based on a win-win principle", official media said. Saeed Jalili was also quoted as saying such talks represented a "golden opportunity" to strengthen peace.

But Iran "will not bow to any illogical demands that would deprive it of its rights to continue with its peaceful nuclear activities", he said.

The United States says it is focusing on diplomatic pressure to thwart Tehran's nuclear ambitions but has not ruled out military action as a last resort.

The New York Times on Friday quoted U.S. officials as saying Israel had carried out a large military exercise, apparently a rehearsal for a potential bombing of Iran's nuclear facilities.

The U.N. nuclear watchdog chief, Mohamad ElBaradei, the same day warned a military strike on Iran would turn the Middle East into a fireball.

Iranian government spokesman Gholamhossein Elham, when asked about the report on Saturday, branded Israel a "dangerous regime" but made clear his view that it would not dare attack.

"Such insolence and audacity (against Iran's) interest and territorial integrity is an impossible act," Elham said.

Diplomats said on Friday the six powers had offered Iran preliminary talks on its nuclear program, on condition it limit enrichment to current levels for six weeks in exchange for a freeze on moves towards harsher sanctions.

They said European Union foreign policy chief Javier Solana conveyed the proposal during talks in Tehran on June 14 in which he presented a revised batch of incentives for Iran to stop pursuing technology that could yield atomic weapons.

"FREEZE-FOR-FREEZE"

Asked whether such a "freeze-for-freeze" proposal would be acceptable to Iran, Elham told reporters:

"About suspension, it has been said that suspension of activities and suspension of enrichment is not a logical issue that would be acceptable and in any case the continuation of negotiations will not be based on enrichment suspension."