China says wants Iran dispute resolved by negotiation

LONDON (Reuters) - China wants the dispute over Iran's nuclear program resolved through negotiation, Chinese Foreign Minister Yang Jiechi said on Wednesday.

Yang did not directly respond to questions on whether a new U.S. intelligence report on Iran's nuclear ambitions had changed the situation or whether China would support new United Nations sanctions.

"We hope that all the parties will work together to seek and realize an eventual peaceful resolution of this issue through negotiations," Yang told a meeting organized by the Chatham House international affairs think-tank in London.

China's U.N. ambassador said on Tuesday the U.S. intelligence report's finding that Iran had halted its nuclear arms program had changed the situation for Security Council consideration of a third round of sanctions on Tehran.

China backed nuclear non-proliferation efforts but believed Iran had a right to the peaceful use of nuclear energy, Yang said.

"At the same time we've made it quite clear that the relevant U.N. resolutions ... should be implemented," Yang said through an interpreter.

"We hope that the various parties will stay engaged in dialogue and cooperation on this issue."

China believed the "dual track strategy" -- trying to persuade Iran to abandon nuclear activities through negotiations while considering new sanctions -- was the right one, he said.

He voiced hope that Iran and the U.N.'s nuclear watchdog, the International Atomic Energy Agency, would "step up their consultation for resolving outstanding issues" and that Iran would continue to pursue dialogue with the European Union.

(Reporting by Adrian Croft; editing by Robert Woodward)