TEHRAN: Iran said today that it was considering a new proposal from the major powers for the supply of nuclear fuel but France swiftly denied any such offer had been made.

The head of Iran’s atomic energy organisation, Ali Akbar Salehi, told domestic news agencies the new proposal had come in response to Iran’s move last week to

begin enriching uranium itself to the 20 per cent level required for a Tehran medical research reactor after rejecting a previous offer.

“After the decision by Iran to produce its own uranium enriched to 20 per cent, France, Russia and the United States presented a new proposal which we are in the process of considering,” ILNA news agency quoted Salehi as saying.

“I am not going to unveil the contents of this proposal,”

he told Fars news agency.

France, which was to have provided the fuel for the Tehran reactor under the

original deal using enriched uranium provided by Russia, denied any new proposal was on the table.

“Mr Salehi ought to know the only offer is the one which was proposed by the IAEA (International Atomic Energy Agency) in October, and which has so far not received a satisfactory response,” French foreign ministry spokesman Bernard Valero said.

Under the proposal drafted by the UN watchdog and backed by the major powers, Iran would ship out most of its stocks of low enriched uranium in return for receiving fuel for the Tehran reactor from France and Russia.

Western governments have been pushing for Iran to ship out all of the low enriched uranium before receiving any fuel.

Iran has insisted it should only send out the uranium

as it receives the fuel and has demanded the exchange happen on its own soil.

“If it comes without conditions, we are ready for an exchange but they have to give sufficient guarantees...

that is, the exchange must be simultaneous and take place on Iranian territory,” Salehi reiterated today.

“We will not accept any

other conditions... but if we obtain the fuel we need

we are ready to halt 20 per cent enrichment.

“The proposal from these countries will only lead to a halt to the enrichment (to 20 per cent) if all the conditions that Iran has made

for the exchange of (low enriched) uranium for fuel are respected,” Salehi said.

“Various countries have contacted Iran with ideas for the exchange of uranium for fuel and they are currently being considered,” he added.

The UN nuclear watchdog has proposed that as a compromise the fuel be swapped in a third country and Turkey, which has good relations with its Iranian neighbour, has offered to host the exchange.