Iran defiant in face of united US, EU stance

"The Islamic Republic of Iran is determined to use peaceful nuclear technology and no pressure, intimidation or threat can make Iran give up its right," Foreign Ministry spokesman Hamid Reza Asefi said.

Tehran says its nuclear facilities will only be used to generate electricity and never diverted to weapons production.

The EU and Washington, which suspect Iran could use its nuclear power program to make atomic bombs, unveiled a coordinated carrot and stick approach on Friday aimed at pressuring Tehran to give up sensitive activities like uranium enrichment which can be used to make bomb-grade fuel.

Iran has frozen enrichment while it tries to reach a negotiated settlement about its nuclear program with the EU big three Britain, Germany and France.

While the EU trio said they would back US demands to send Iran's case to the UN Security Council if it resumed enrichment, Washington, in a policy shift, offered practical backing for the EU's diplomatic approach.

Secretary of State Condoleezza Rice said Washington would allow Iran to begin talks on joining the World Trade Organisation (WTO) and would consider letting it buy civilian airline parts if it ceased all activities that could produce fuel for nuclear power plants or atomic weapons.

WTO membership and aircraft spares are key incentives which the EU hopes will persuade Iran to scrap enrichment plans. The EU was unable to deliver these inducements without US support.

Iran dismissed the incentives as meaningless. Asefi said US restrictions on the sale of aircraft spares to Iran should never have been imposed.

"Lifting them is no concession and entering the WTO is a clear right of all countries," he said.

"Correcting some (previous) errors and lifting some restrictions imposed on Iran without reason will not stop Iran from acquiring its legitimate rights."