VIENNA, June 8: France, Britain and Germany circulated a draft UN nuclear resolution on Tuesday that sharply rebukes Iran for what it called sluggish cooperation with the UN's nuclear watchdog, the International Atomic Energy Agency (IAEA).

The text calls for a continuation of IAEA inspections and urges "Iran to take all the necessary steps on an urgent basis to resolve all outstanding questions". While toughly worded, it does not hint at any punitive action.

As expected, it does not mention reporting Iran to the UN Security Council for possible sanctions, which Washington says would be justified. Still, Western diplomats on the IAEA board said the text would likely be acceptable to most members of the board - including the United States, which says Iran is using its nuclear programme as a front for developing atomic weapons.

Iran's foreign ministry said on Sunday it had done everything necessary to clear up concerns about its nuclear programme and called for an end to the IAEA's investigation. But one diplomat said the main point of the resolution was to keep the case open until the IAEA gets to the bottom of Iran's programme.

The draft said the IAEA governing board "acknowledges Iranian cooperation in responding to agency requests for access to locations" - including military sites - but "deplores... the fact that this cooperation has not been complete, timely and proactive".

In particular, the text "deplores" Iran's decision to delay March inspections of sites connected with Tehran's advanced P-2 centrifuge programme, which Iran had failed to mention in an October declaration it said was a full picture of its programme.

The European Union's "big three" also note "with concern that the agency's investigations have revealed further omissions in the declarations previously provided by Iran" about the P-2 and other potentially weapons-related research.

IAEA chief Mohamed ElBaradei said in a report last week that Tehran had changed its story and admitted to importing P-2 centrifuge magnets, which it had said were produced at home.

The IAEA has been investigating Iran's nuclear programme since Aug 2002, when an exiled Iranian opposition group alleged that Tehran was hiding an underground uranium enrichment plant and other sites from UN inspectors.

While the draft includes some praise of Iran, it is predominantly critical, said one diplomat familiar with it. "It's tougher than I had expected," the diplomat said.

Several diplomats said U.S. negotiators would push for even harsher language in revisions over the next few days. A U.S. official said: "We have seen the draft. We think the board is going to take appropriately firm action when it meets next week."

The draft also urges Iran to scrap its plans to begin operating a uranium conversion facility and constructing a heavy water research reactor that would produce bomb-grade plutonium.

The text says the IAEA board also "deeply regrets" that Iran has not fully suspended all aspects of its uranium enrichment programme, as it had promised to do under a deal Tehran struck last year with the three European states. -Reuters