Solana to Offer Iran Rewards

The European Union's foreign policy director, Javier Solana, is to meet Iranian officials today to present a package of rewards and penalties aimed at stopping the country's uranium enrichment programme.

The package of measures, agreed in secret by security council members plus Germany last week, includes US offers to lift a ban on the delivery of some sensitive technologies.

Proposals include waiving trade sanctions to allow Iran to purchase aircraft parts and agricultural technologies from American firms, according to the New York Times.

A commitment to support Iran's plan for a nuclear programme for civilian use and to back Iran's membership of the World Trade Organisation are also within the package, according to the paper.

The offers are dependent on an agreement by Iran to suspend its enrichment and reprocessing activities, which are seen by the US as a cover for developing nuclear weapons.

A range of penalties could be brought to bear if Tehran refuses, including the threat of UN sanctions, a travel ban on Iranian leaders and a freeze on Iranian financial assets.

Arriving in Tehran after a three-day tour of the Middle East, Mr Solana said the nations backing the Iran proposal hoped for "a new relationship on the basis of mutual respect and trust".

He is to present the package to the Iranian foreign minister, Manouchehr Mottaki, and Iran's chief nuclear negotiator, Ali Larijani, later today.

Officials with Mr Solana stressed that his mission was to present the package as it is, making clear he would not negotiate with the Iranians.

Mr Mottaki said Iran would review the package after today's meeting and respond. He did not give a timetable.

He said: "If there is the political will to solve Iran's nuclear issue without any attempt to politicise it, I think we can come to a comprehensive agreement."

The five permanent members of the security council - Britain, China, France, Russia and the US - plus Germany, agreed on the package in Vienna last week but declined to make the proposal public.

It offers both economic and political incentives if Tehran relinquishes domestic enrichment, which is used to generate power but can also produce weapons-grade uranium for nuclear warheads.

The package also includes disincentives if Iran refuses, including the implicit threat of UN sanctions, a travel ban against Iran's ruling religious leaders and government officials involved in the nuclear programme and a freeze of Iranian financial assets abroad.

The package is not thought to include any specific threat of military action if Iran refuses to suspend the programme.

It is not clear whether it includes a guarantee that the US will not attack Iran if it agrees to suspend uranium enrichment - the subject of intense debate in Vienna.

The US last week agreed to join multilateral talks if Tehran suspends enrichment. Iranian officials have since sent conflicting signals on the initiative, reflecting a possible struggle within the leadership over how to react.

Some commentators have suggested the American offer to join direct talks might have caught the Iranian government off guard.

The Iranian president, Mahmoud Ahmadinejad - normally a hardline critic of the US who defends his nation's right to enrichment - welcomed the US offer over the weekend and said a breakthrough in negotiations was possible.

But Iran's supreme leader, Ayatollah Ali Khamenei, has threatened to disrupt the world's oil supply if Tehran is punished over its nuclear programme. Iran is the world's fourth largest oil exporter.

The offer to lift sanctions on American-made airplanes and parts is seen as a major step by the US, which put the restrictions in place after the 1979 revolution.

The sanctions forbid Iran from shopping for new spare parts for its civilian airlines and are regularly blamed for plane crashes.