Iran nuclear talks end in China without resolution

By Chris Buckley

SHANGHAI (Reuters) - Six-nation talks about Iran's nuclear program on Wednesday failed to secure full agreement on a new package aimed a restarting negotiations with Tehran, but the Iranian president said the country was open for discussions.

The gathering of the five permanent members of the U.N. Security Council -- the United States, Russia, China, Britain and France -- plus Germany and an EU representative, who met in Shanghai, was a first for China, which has largely kept away from the spotlight in the dispute.

"We can say we agreed on the main content of a plan to restart negotiations, but not all the problems have been resolved," Chinese Assistant Foreign Minister He Yafei told reporters, adding that the talks were long and constructive.

The delegates, a tier below minister level, would report back to their governments and continue discussions among themselves and Beijing will urge Tehran to respond positively to whatever offer is ultimately put on the table, he said.

China, a country Iran has been courting, is unlikely to be ruffled by the day's limited progress. The government seems keen to highlight its role in seeking to end an impasse over Iran's efforts to enrich uranium, but also wants avoid falling out with a key energy supplier.

"With this balance of interests, it's difficult to imagine China being a place for breakthroughs," said Shen Dingli, an expert on nuclear politics at Fudan University in Shanghai.

"The equation of interests won't change and China isn't some magical place to solve problems. But it's important to show that China is part of the international mainstream on these issues."

China has become an increasingly confident player in multilateral diplomacy in recent years, encouraged by the praise it has garnered for hosting several rounds of talks aimed at ending North Korea's nuclear program.

Iranian President Mahmoud Ahmadinejad earlier on Wednesday told a rally in the city of Qom, south of Tehran, that Iran was ready for negotiations on nuclear and other issues provided such talks do not violate the country's rights.

But showing uncharacteristic restraint, Ahmadinejad said he would not address Iran's nuclear row with the West in detail and would save his comments for another occasion.

He did not mention the talks but may have been wary of overshadowing them. Tehran is as keen for Chinese investment as Beijing is hungry for Iranian oil, and Beijing often calls for more talks, rather than sanctions, to defuse the dispute.

NO DETAILS

China's He declined to discuss specifics of the discussion, in particular what a new package of incentives might contain.

But he did say that Iran was being offered help in civilian nuclear power, in economic development and political confidence-building measures and added that all six countries were keen to resolve the Iran issue through negotiations.

Tehran insists it has the right to enrich uranium, which it says is for peaceful power generation. But the United States, Western European powers and their supporters fear Iran's enrichment could give it the means to make nuclear weapons.