Iran proposes big changes to draft atom deal: report

By Reza Derakhshi

TEHRAN (Reuters) - Iran proposed changes to a U.N.-drafted nuclear fuel deal on Thursday, Iranian media said, making demands that appeared to challenge the basis of the agreement with the United States, France and Russia.

The U.N. International Atomic Energy Agency (IAEA), which had requested a reply by last Friday, said its chief, Mohamed ElBaradei, had now received an "initial response" from Tehran.

"(ElBaradei) is engaged in consultations with the government of Iran as well as all relevant parties, with the hope that agreement on his proposal can be reached soon," the IAEA said in a statement. It gave no further details.

The Iranian pro-government daily Javan said in an unsourced report that Iran wanted shipments of low-enriched uranium (LEU) -- for conversion abroad into fuel for a Tehran research reactor -- to take place in stages, not in a single consignment.

It also wanted simultaneous imports of higher-enriched fuel from other countries for the same plant.

The conditions were likely non-starters for Western powers, which suspect the Islamic Republic covertly seeks nuclear arms capability. Tehran says its program is only for electricity.

"If the Iranian position is as described, it gets the IAEA nowhere," a western diplomat in Vienna said. "They are undercutting Mohamed ElBaradei, who is seeking to help them demonstrate the peaceful intent of their nuclear program."

ELBARADEI PLAN