September 30, 2003	Tuesday	Sha’aban 3, 1424

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BRUSSELS, Sept 29: The European Union warned Iran on Monday of costly economic fallout if the Islamic republic fails to come clean on its nuclear programme.

EU foreign ministers said a lucrative trade accord could be in danger if Iran fails to meet international concerns over nuclear non-proliferation, fighting global terrorism, human rights and the Middle East peace process.

“More intense economic relations can be achieved only if progress is reached in the four areas of concern,” the ministers said in a statement issued at talks here.

Iran is under pressure from the world community and the UN’s International Atomic Energy Agency (IAEA) to open up its nuclear programme to snap inspections.

On Monday the foreign ministers also reiterated a demand that Tehran sign an additional protocol to the nuclear Non-Proliferation Treaty (NPT) that would allow IAEA inspectors to descend on its nuclear sites without warning.

The EU hopes “Iran will sign and implement the additional protocol without delay as a first and essential step to restore international trust in the peaceful nature of its nuclear programme,” said the ministerial statement.

Diplomats familiar with the standoff said the EU warning could be an important lever in the simmering crisis.

“It is clear that Iran’s trade relationship with the EU is very important. It is important that pressure is not coming from one country but from a group of countries,” said a UN diplomat close to the IAEA in Vienna.

British Europe Minister Denis MacShane said the will of the EU and the rest of the international community was “very, very clear”.

“We want Iran to state unequivocally that there are no nuclear weapon possibilities that could be developed as a result of any nuclear programme in Iran,” said MacShane, standing in for Foreign Secretary Jack Straw.

German Foreign Minister Joschka Fischer said it was imperative to prevent a “nuclear arms race... in one of the most unstable and dangerous regions in the world at the moment”.

Iran rejects any restrictions on the peaceful use of nuclear technology, said Iranian government spokesman Abdollah Ramezanzadeh.

“Up to now, we have cooperated with the IAEA beyond our commitments” under the NPT, he said, adding that future cooperation with the IAEA depended on “how our negotiations progress”.—AFP