Weapons of Mass Destruction (WMD)

DATE=6/8/05

TYPE=CORRESPONDENT REPORT

TITLE= RICE-IAEA-IRAN (L-ONLY)

NUMBER=2-325141

BYLINE= DAVID GOLLUST

DATELINE= STATE DEPARTMENT

CONTENT=

VOICED AT:

HEADLINE: Rice to Discuss New Term for IAEA Chief ElBaradei

INTRO: Secretary of State Condoleezza Rice meets today (Thursday) with International Atomic Energy Agency Director-General Mohamed ElBaradei following news reports the Bush administration is dropping its opposition to a third term for the IAEA chief. Ms. Rice discussed Mr. ElBaradei's future and related issues, including Iran's nuclear program, Wednesday with German Foreign Minister Joschka Fischer. VOA's David Gollust reports from the State Department.

TEXT: There had been persistent reports of friction between the Bush administration and Mr. ElBaradei over Iraq's weapons capability before the ouster of Saddam Hussein, and his handling of Iran's nuclear program.

But the administration is apparently softening its opposition to another term for the Egyptian lawyer, the IAEA chief since 1997, amid reports of minimal support among key U.S. allies for his ouster.

At a joint press appearance with German Foreign Minister Fischer, Secretary Rice confirmed she would meet at the State Department with Mr. ElBaradei Thursday in the highest-level U.S. contact with the head of the IAEA in several months.

She said the Bush administration, as a matter of principle, still opposes extended tenure for U.N. agency heads but pointedly did not say that Mr. ElBaradei must step down:

///RICE ACTUALITY///

We have a long-held view that, in general, it is better that there be two terms for these positions. Nonetheless, we have worked well with Mr. ElBaradei in the past and I'm going to meet him tomorrow to discuss what his vision for what the IAEA will do in these next extremely important years. Obviously how Iran would be handled is an important issue.

///END ACT///

Mr. Fischer, a key player in the European Union nuclear initiative with Iran, said Germany's experience with the IAEA under Mr. ElBaradei has been excellent and that he had no reasons for complaint.

Along with his French and British colleagues, Mr. Fischer obtained an Iranian commitment in Paris last November to halt uranium enrichment activity pending further negotiations over its nuclear program, which the United States says has a covert weapons component.

Two weeks ago Iran told the so-called EU-Three it would continue the suspension and hold more talks after the Iranian presidential election in August.

In his comments here, Mr. Fischer called for close coordination between United States and Europe on the issue, and said talks should proceed as long as Iran maintains the freeze at key nuclear sites:

///FISCHER ACTUALITY///

We think the negotiations should continue as long as the conditions for this negotiation process exists, and these are two: First of all, that both sides are negotiating based on the Paris agreement between the E-U-Three and Iran, and secondly that there is no change on the ground. Natanz, Isfahan, and all the other nuclear sites are under the control of IAEA inspectors, and as long as there are no activities there, as long as we have a suspension of the activities, I think the conditions are given to move forward in the negotiations.

///END ACT///

Though not a direct participant in the talks, the United States has offered Iran economic incentives Iran to back the negotiating process.

Secretary Rice noted that the Bush administration late last month, as promised, dropped its opposition to Iran's application for membership the World Trade Organization.

She said it is also prepared to clear the way for Iranian purchases of spare parts for its aging fleet of American-made commercial airliners, but said no additional incentives are being considered at this point. (Signed)

NEB/DAG/MAR

. But at a joint press appearance capping her talks with Foreign Minister Fischer, Ms. Rice said no additional U.S. concessions were being considered and that the onus is on Iran

(Signed)

NEB/DAG

EB Tuff enuf--???

We do have a long held view that its better that there be 2 terms for these positions, none-the-less we have worked well with Mr. EB in the past and I;m going to meet him tomorrow to discuss his vision for what the IAEA will do in htew3e next extremely imp years. Obv how Iran woulde ba handled is an imp issues, also been some very int ideas on how to str. The NPT, bush had some. EB had some-so well see where we comew out after those discussions, but I'd like to say weve had goode relations with him and I llok fwd to con our discussions tomorrow.

12---barry-code-might be code for US making some offer to be part of econ inceptive package????...isnt poss US be urged to do something more.

13-Rice-very strfoweard socission about Iran-this unbited states as you know a couple months ago did put into the mix asome changes in our policy to support the EUY3negs-we carried through on that obligation when we did not use our objection to Iran's alplication for WTO membership and of course we ready at any time to purusre the issue of spare parts for civilian aircraft, which is what at this point we have on the tabhle. We are saying mnore thsan go get them,I thiunk have taklked to my Euiro collagues about this Iranbian siatuiioin during the negs on an almost dialy basis because it is very imp,. That there be a unhited front with Iran, so that Iran understands its obligationb to live up to its injternational commitments and I might just say that weve also had the benefit of discussion wirth the russions. so I think we are where we are and my und. From the EU3 is that they will resum,e negs qwi hthe Iranbaian at some point on thius broad set of discussions, having to do with nuclear and there are other working groups as well, and well keep a very close coordinate and stay abreast of them but we are not considering anything else at this point.

Fischer????

Close coorination is essential and we did that in the past.. sec state just mention that the day after our agreement in Geneva our last agreement in geeva there was deicison on the WTO to open the negs about trhe accession of Iran,, so I think this make quite clear how closer we coorate and coordinate and this is crucil to future suceess. And we think the negs should c ontinue as lontg as the conditions for threes negsaotion process exists and these are 2 - first that both sides are negtoaition based on the poaris agreement beyweren the EU3 and Iran and second that theree is no change on the ground,..Natazn Isfahan not the other nuke sites are under control of the IAEA inspectoirs and as lomng as there are no acticities there, as long as we have a sususion of the activiite I thiunk that the conditions are given to move forward in the negs

The negs are not easy, they are comploicated but I think that with the close coord of our American friends and the russions-its also very important, russi contrinutes a lot to the progreswsw of the negotaiton and with our friends and with ht ebacking of the EU I thin kwe can move fwrd.