U.N. Security Council split over Iran's nuclear proposal

~ The counteroffer asks for negotiations but resists suspending uranium enrichment.

TEHRAN, Iran -- Iran said Wednesday it had offered "positive and clear signals" in its proposal to resolve the standoff over its nuclear program, as the key U.N. Security Council members diverged over their responses -- setting the stage for a possible fight if the West pushes for sanctions.

China and Russia suggested they might support further talks, but the United States and France said Tehran's proposal falls short of U.N. demands. None unequivocally rejected or accepted Iran's counteroffer to a package of incentives offered by the United States and five other world powers to persuade Tehran to roll back on its nuclear program.

Diplomats at the United Nations and foreign capitals were studying what Germany called Iran's "voluminous and complex" offer, a day after Tehran presented it without releasing full details. Iran's proposal offers negotiations with the six nations but apparently resists suspending uranium enrichment -- the main Security Council demand to avoid sanctions.

A statement by the State Department acknowledged that Iran considered its proposal to be a serious one and "we will review it." But it went on to say that Iran's response "falls short of the conditions set by the Security Council" and Washington would be consulting with its partners "on next steps."

Nevertheless, the Iranians sought Wednesday to portray their detailed counteroffer as a major initiative that could lead to a resolution of the yearlong dispute without having to resort to a bruising fight over sanctions.

It appeared the counteroffer was designed to entice Europe, China and Russia into further negotiations without accepting a suspension of uranium enrichment -- an important step in making nuclear weapons -- as a precondition for talks. That could drive a wedge among the five veto-wielding powers on the Security Council -- the Americans, British and French on one side and the Russians and Chinese on the other.

The six countries that offered the incentives package -- the five permanent council members plus Germany -- must now decide whether to respond to questions Iran reportedly raised in its response. U.S. ambassador John Bolton had said the United States would move quickly to circulate elements for a new Security Council resolution calling for economic sanctions against Iran if its response was not positive.

"If the Europeans pay proper attention to positive and clear signals included in Iran's response, the case will be solved through negotiation and without tension," state-controlled radio quoted Foreign Ministry spokesman Hamid Reza Asefi as saying Wednesday.

Asefi described Iran's proposal as a sign of his country's good will to resolve the standoff.

But a senior U.S. official familiar with the outlines of the Iranian proposals suggested Tehran's offer strengthens Russia and China, which are reluctant to move to immediate sanctions.

The official, who spoke on condition of anonymity because he was not authorized to discuss the issue with the media, said Iran's response gives those two countries ammunition to oppose sanctions by giving the appearance of wiggle room even if there is none.

Both Russia and China have significant economic ties to Iran. China is in the market for sources of oil to fuel its economic boom, and Moscow has had nuclear deals with the Iranians dating back to Soviet times. Russia is also a major supplier of weapons to Iran and is building the country's first nuclear power plant in the southern port of Bushehr under an $800 million contract.

The dispute over Tehran's nuclear program revolves around Iran's insistence that it wants to master the technology simply to generate electricity. But critics say Iran is interested in enrichment because it wants to make nuclear weapons.

Diplomats at the United Nations said the United States, Britain, France and Germany were consulting Wednesday from their capitals.

French Foreign Minister Philippe Douste-Blazy said "the door is still open" for negotiations but only if Iran suspends uranium enrichment first. German Foreign Ministry spokesman Martin Jaeger said the demand to halt enrichment indicated "that Iran clearly has lost the confidence of the international community that its nuclear program is civilian."

But Moscow and Beijing appeared receptive toward further talks. Russia's Foreign Ministry said it would continue to seek a negotiated solution, and China appealed for dialogue, urging "constructive measures" by Iran and patience from the U.S. and its allies.

Russian Foreign Ministry spokesman Mikhail Kamynin said talk of sanctions was "premature" before the Aug. 31 deadline set by the Security Council for Iran to halt uranium enrichment or face the risk of economic and political sanctions.

"The Russian side has started studying the Iranian reply along with its partners in the sextet," Kamynin said in a statement.

"Russia will continue with its course of searching for a political solution ... and will continue to seek to preserve the role of the International Atomic Energy Agency and prevent the erosion of the nonproliferation regime."

Last month, a senior Iranian lawmaker said parliament was preparing to debate withdrawal from the Nuclear Nonproliferation Treaty if the Security Council adopts a resolution to force Tehran to suspend enrichment.

Iran delivered the written proposal in response to a package of incentives offered in June by the five permanent Security Council members and Germany to persuade Iran to halt enrichment -- and the threat of punishments if it does not.

Last month, the Security Council set the Aug. 31 deadline for Iran to halt enrichment or face economic and political sanctions. Iran called the resolution "illegal" but had said it was willing to offer a "multifaceted response" to the incentives package.

The Western incentives package has not been made public but some details have leaked. They include an offer to lift a ban on sales of Boeing passenger aircraft as well as providing Iran with some nuclear technology to build reactors for peaceful purposes.

The drama is playing out amid concerns in the West that the ability of the pro-Iranian Hezbollah guerrillas in Lebanon to shower northern Israel with rockets despite 34 days of bombardment this summer has emboldened hard-liners in Tehran to risk a showdown with the Americans.

In London, a leading British think-tank said Iran has established itself as Washington's chief rival in the Middle East and now wields more influence in Iraq than the Americans do.

The report by Chatham House said the ease with which Iran now operates in the Middle East has "severely compromised" America's ability to confront Iran.

"While the U.S. has been playing poker in the region, Iran has been playing chess," said Nadim Shehadi, a report contributor. "Iran is playing a longer, more clever game and has been far more successful at winning hearts and minds."