Iran open to talks with Europe on nuke issue

The overture, mentioned in private by a senior Iranian diplomat who remained anonymous, followed a letter from Britain, France and Germany warning Iran that if it broke a November 2004 agreement to freeze nuclear fuel cycle activities it would face "consequences".

The Iranian diplomat, according to the daily, said his government had responded positively to a European offer for a four-way meeting to discuss the issue, which it wants to be held in Tehran in deference to Iranian officials who are preparing for the June 17 presidential elections.

The Washington Post said European officials had countered demanding guarantees that Iran is serious about its nuclear suspension before they send a delegation to Tehran for the four-way talks.

Despite the appearance of a thaw in the nuclear standoff with Iran, diplomats on both sides of the Atlantic told the daily they were uncertain there was enough common ground for a meeting to take place.

US and European diplomats said the only way out of the escalation would be a retreat by Iran from its plans to restart a uranium-conversion facility at Isfahan.

In their warning, the Europeans made it clear Iran could face international sanctions.

British Prime Minister Tony blair told reporters Thursday that "we certainly will support referral to the UN Security Council if Iran breaches its undertakings and obligations."