OTTAWA, Dec 1: US President George Bush said on Tuesday that Iran's agreement to freeze all uranium enrichment activities was "certainly not the final step" in easing US fears that Tehran seeks a nuclear weapon.

"The Iranians agreed to suspend - but not terminate - their nuclear weapons program. Our position is that they ought to terminate their nuclear weapons program," Mr Bush said.

The UN nuclear watchdog agency on Monday spared Iran from being referred to the UN Security Council for possible sanctions after Tehran agreed, in a deal with Britain, France and Germany, to suspend its uranium enrichment program.

Mr Bush would not say whether he still hoped to take the Islamic republic before the Security Council or say directly whether he was unhappy about Iran's agreement with the International Atomic Energy Agency (IAEA).

"I viewed yesterday's decision by the Iranians as a positive step. But it's certainly not the final step," said Mr Bush, who has accused Tehran of using its nuclear program as cover for a secret effort to acquire atomic weapons.

Tehran claims its nuclear program is a peaceful, civilian effort and rejects Washington's claims. "It's very important for whatever they do to make sure that the world is able to verify the decision they have made. And so we've obviously got more work to do," said Mr Bush.

The president's comments came during a joint public appearance with Canadian Prime Minister Paul Martin as the US leader made his first official working visit to Canada since taking office in Jan 2001. -AFP