Iran on Sunday rejected a European Union proposal that it should stop enriching uranium in return for nuclear technology.

Britain, Germany and France, the EU trio, want Iran to halt uranium enrichment since it can be used to make nuclear bomb material. Iran insists it only wants to make the fuel for nuclear power stations.

"The EU proposal is unbalanced ... unlimited uranium suspension is unacceptable for Iran," Foreign Ministry spokesman Hamid Reza Asefi told a news conference.

But Asefi left the door open for an agreement after further talks, scheduled to take place later this week in Vienna.

"We view the European offer as a primitive proposal not a final one," he said. "Negotiations will continue on Wednesday. We will have our own suggestions and we will study the Europeans' proposal and will give the Europeans the results."

Washington accuses oil-rich Iran of using its nuclear program as a veil for developing an atomic arsenal. Teheran says it only wants to generate electricity.

The EU "big three" have led a European effort at compromise that would avoid sending Iran's case to the UN Security Council.

"The Europeans have chosen the right way by negotiations, Asefi said. "We have to reach an agreement that would solve the Europeans' worries and give us our rights."

One European diplomat familiar with the EU trio's proposal said it contained too little to attract Iran.

In return for giving up uranium enrichment the Europeans would guarantee a supply of reactor fuel and help Iran build a light-water power reactor.

Meanwhile, former United Nations weapons inspector Hans Blix yesterday urged Western nations to offer concessions to Iran if they want the government there to scrap uranium enrichment.

Iran has every right to conduct an enrichment program, Blix said in an interview.

If Western nations asked Iran to abandon enrichment, Blix said, "then you are asking them to give something up they have a right to be doing. Then you have to accept that they will make demands."

(China Daily October 25, 2004)