26 June 2004	Saturday	07 Jamadi-ul-Awwal 1425

WASHINGTON, June 25: Iran told three European nations on Thursday it would resume making uranium centrifuge parts, breaking an agreement it had struck with Britain, France and Germany in February, a top US official said.

"Today ... the government of Iran has informed the United Kingdom, Germany and France that it is resuming production of uranium centrifuge parts," Undersecretary of State for Arms Control and International Security John Bolton told lawmakers about a letter addressed by Tehran to the three European governments.

Mr Bolton said the United States had never believed that Iran had ceased making the parts and the International Atomic Energy Agency (IAEA) board of governors last week said it was troubled that Tehran had continued to do so.

"They have not, at least at this point, said that they would resume actual enrichment activities but it seems to me it is perfectly obvious that Iran is not producing components for uranium centrifuges to use them as knickknacks in Iranian living rooms," Mr Bolton said.

"This is an act of defiance of the IAEA board of governors. It is a thumb in the eye of the international community," Mr Bolton added.

Enrichment, a process of purifying uranium for nuclear power plants, can also be used to make atomic weapons. If Iran resumed enrichment it would fuel US accusations that Tehran wants a nuclear weapons capability and could provoke a crisis.

Last week the IAEA Board of Governors unanimously passed a resolution that sharply rebuked Iran for not cooperating fully with a UN investigation of Tehran's nuclear programme.

Washington believes Iran is seeking to develop atomic weapons. Tehran says it wants nuclear power for electricity.

The IAEA began investigating Iran after an Iranian exile group reported in Aug 2002 that Tehran was hiding a massive uranium enrichment facility and other sites from the IAEA.

CONDEMNATION: Britain and Germany on Friday condemned Iran's decision to resume production of centrifuge parts and said they would work with France on a response.

One European source said although it was too early to draw conclusions, it was possible the letter meant Iran had reneged on its agreement, which could have serious implications for the European Union's engagement with Iran.

That source said it was unclear what would be the best course of action to take if Germany, Britain and France thought that were the case. -Reuters