TEHRAN, March 14: Iran again warned on Sunday that it could revise the level of its cooperation with the international nuclear watchdog after condemnation of its atomic programme but said it has no plans to pull out of the nuclear Non-Proliferation Treaty (NPT).

Foreign ministry spokesman Hamid Reza Asefi also left open the return of International Atomic Energy Agency inspectors which Tehran suspended after the strong IAEA resolution against it, but said this would have to be renegotiated.

"The method of cooperation could change if the realities are ignored," Asefi told a press conference, while adding, "the question of cooperation is not at issue." Asefi was reacting to Saturday's US-backed IAEA resolution condemning Iran for hiding possibly weapons-related nuclear activities.

"We have cooperated with the IAEA and we are still interested in this cooperation because we are clear on our objectives and intentions", he said, recognising that European allies had "done what they could" to assist Iran.

"We were expecting (more) from them, but the Europeans did what they could," Asefi said. "We have not noticed any violation of their obligations," he added. In October, the German, French and British foreign ministers persuaded Tehran to fully cooperate with the IAEA and suspend uranium enrichment.

Asefi said remarks on Wednesday by Foreign Minister Kamal Kharazi indicating that Tehran could break ties with the IAEA had been misinterpreted. Kharazi had said: "We are engaged in cooperation (with the IAEA), and for this to continue the cooperation has to be bilateral. If one side does not respect its obligations, the cooperation will end."

Asefi branded the IAEA resolution "unfair and insulting," saying the cancellation of the inspection team's visit was Tehran's response to it. "The necessary coordination will take place with the IAEA for the visit of the inspectors and the conditions and date of their arrival will be the subject of discussions", Asefi added.

"We will not allow anyone to speak of the Islamic republic in this manner," Asefi warned. He dubbed "unacceptable" IAEA demands for a complete accounting of Iran's nuclear activities, stressing that Tehran had "nothing to hide."

And he said that the refusal to allow in the inspectors should not be used as a pretext to refer Iran to the UN Security Council, which could decide to implement sanctions.

But senior diplomats in Tehran said such rampant threats were customary and often hot air, even if they should be taken seriously, and that it was not the first time Iran had refused to welcome IAEA inspectors.

"There are public statements and then there is work behind the scenes. What we see is Iranians continuing to cooperate. They took part in all the meetings in Vienna," said one diplomat. "The question is whether Iranians have any choice other than cooperation and whether those who extol a breach are able to enforce their views," he said.

"It is not what happens at the IAEA meetings which count, but at least what happens between the meetings," another diplomat said, "and if the resolution highlighted the deficiencies, it also stressed that the Iranians have shown cooperation".

The IAEA, which verifies the NPT, has since February 2003 been working to determine whether Iran's nuclear programme is peaceful, or geared towards secretly developing atomic weapons, as the United States has charged.

It is to review the Iranian programme in June and Tehran's decision to put off the inspection could mean the inspectors would not have enough time to file a full report, a diplomat said in Vienna. -AFP