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Iran rejects incentives, resumes nuclear work

ISFAHAN, Iran - Iran stepped up its confrontation with the West over its nuclear program, restarting work at a uranium conversion facility Monday in a move the United States and Europe have warned will prompt them to seek U.N. sanctions.

The resumption strikes a blow at European efforts to persuade Iran to rein in a program that Washington says is intended to develop nuclear weapons. Over the weekend, Iran, which says it aims only to produce electricity, rejected European proposals for economic incentives in return for limiting its nuclear activities.

The U.N. nuclear watchdog, the International Atomic Energy Agency, will hold an emergency meeting of its 35-member board of governors today to discuss the standoff with Iran.

Tehran suspended its nuclear activities in November to avoid sanctions and as a gesture in the negotiations with Europe. But it has expressed frustration with the talks and has been threatening for weeks to resume part of the program - work done at the Uranium Conversion Facility outside the city of Isfahan.

On Sunday, Iran brushed off the sanctions threat.

"We are not concerned and are ready for everything," Foreign Ministry spokesman Hamid Reza Asefi said. He called the threats "not effective."

"What interests us is cooperation," Asefi said. "We advise Europe to withdraw its threats."

Work at Isfahan resumed Monday after IAEA inspectors installed cameras and other surveillance equipment intended to ensure no nuclear material is diverted.

Iran has insisted it has the right under the Nuclear Nonproliferation Treaty to carry out the entire fuel cycle - from raw uranium to fuel for a reactor.

[Last modified August 9, 2005, 01:24:12]