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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Iran meets IAEA head, no fuel deal advance Reuters - 1 hour 33 minutes ago Send IM Story Print By Sylvia Westall VIENNA - Iran's foreign minister met the U.N. atomic watchdog chief on Sunday to discuss a stalled nuclear fuel offer that could help ease tensions with the West but no decisive conclusions were reached, diplomats said. The plan, backed by the International Atomic Energy Agency, calls for Iran to ship most of its stock of low-enriched uranium to Russia and France for further enrichment and transformation into fuel assemblies for a medical research reactor. Iran agreed to the offer in principle at a meeting in Geneva last October but balked at it later, saying it wanted instead a simultaneous swap on Iranian soil. These are conditions which the other parties to the proposal -- France, the United States and Russia -- have said they cannot accept because the deal in this form would fail to build confidence. The West believes Iran's nuclear programme is ultimately aimed at making weapons. Tehran says it is for peaceful uses only. "The meeting was held in a business-like atmosphere," the International Atomic Energy Agency said in a statement. Iran's Manouchehr Mottaki and IAEA's Yukiya Amano discussed the agency's inspections in Iran and exchanged views on possible ways to implement the fuel proposal, the IAEA said. It gave no indication of a breakthrough. "The agency is not in a negotiation process. It is listening to all sides," a diplomat close to the IAEA said. SANCTIONS The United States, which is seeking support from fellow U.N. Security Council veto holders Russia and China for a fourth round of sanctions on Tehran, said it welcomed the meeting. " a good opportunity for the IAEA to express its concerns to Iran directly," Glyn Davies, Washington's envoy to the IAEA, said. Iran's Mottaki is also visiting Vienna and other capitals to lobby Security Council members to oppose any new U.N. sanctions. Austria, which is on the council until the end of this year, said Iran had to start cooperating with the international community on its nuclear programme or face sanctions. "This will be the consequence if something does not change on the Iranian side," Foreign Minister Michael Spindelegger told a joint news conference with Mottaki. "I hope it does not come to that." Spindelegger said he had received new information from Iran which he would communicate to his European counterparts next week. But he said this did not seem substantial enough to stop the sanctions drive. Mottaki said his discussions with Spindelegger had been "very friendly" but urged Austria to be "independent" at the Security Council. Moscow and Beijing have made clear that their decision to join negotiations with the United States, Britain, France and Germany on a fourth round of U.N. sanctions against Tehran was partly due to Iran's refusal to accept the IAEA fuel offer. U.S. Secretary of State Hillary Clinton and Russian Foreign Minister Sergei Lavrov spoke by telephone at the initiative of the U.S. side on Saturday, Russia's Foreign Ministry said in a statement. "The ministers held a detailed discussion of the situation around Iran's nuclear programme, having stated that further steps towards its settlement should be taken on the basis of consensus, taking into account the opinions of all members of the 'six'," it said. It gave no further details. 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