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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Iran slows nuclear work but pressed on bomb suspicions Fri Aug 28, 2009 4:44pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Mark Heinrich VIENNA (Reuters) - Iran has slowed its pace of nuclear expansion and met some demands for better monitoring but allegations of covert atom bomb research look credible and Tehran must address them, the U.N atomic watchdog said. The International Atomic Energy Agency report will form the basis for six-power talks on September 2 to look into harsher U.N. sanctions against the Islamic Republic over a uranium enrichment campaign the West fears is a stealthy quest for nuclear weapons. New Iranian gestures of cooperation with IAEA inspectors may make it harder for the United States and big European allies to persuade Russia and China, major trade partners of Tehran, to agree on steps to squeeze its lifeblood oil sector. But diplomats said a summary in the report of an IAEA probe into alleged military dimensions to Iran's nuclear work was unusually pointed and would stiffen Western resolve to seek tougher sanctions. "This latest IAEA report catalogues a litany of Iranian obfuscation and obstruction. It makes clear that Iran continues willfully to fail to meet its legally binding international obligations," Philip Parham, Britain's deputy ambassador to the United Nations in New York, told Reuters. The IAEA report said Iran was enriching uranium with about 300 fewer centrifuges than the almost 5,000 operating at the time of the last IAEA report. It did not say why. But an informed senior diplomat told Reuters earlier a batch of machines had been taken down for maintenance or repairs. The confidential report, obtained by Reuters, said however the Islamic Republic had raised the total number of installed, though not all enriching, machines by some 1,000 to 8,308. This would allow Tehran to resume a major expansion of enrichment capacity quickly if it chose, barring technical glitches, U.N. officials familiar with the report said. Consequently, a White House official said the report showed that Iran effectively "continues to expand its nuclear program and continues to deny the IAEA full cooperation." U.N. officials said they could not rule in or out the possibility that Iran's apparent nuclear slowdown was connected with unrest over the disputed presidential election that returned Mahmoud Ahmadinejad to power in June. The West suspects Iran is pursuing the means to produce atomic bombs under cover of a civilian nuclear fuel program. Iran says it wants only electricity from nuclear power and has again rejected U.N. demands for a halt despite new fissures in its leadership over the unrest. It has also stymied an IAEA probe into alleged covert nuclear weapons research. Iran's reported stockpile of low-enriched uranium had increased to 1,508 kg, almost 200 more than in May. Nuclear analysts said the production rate, around 50 percent capacity, appeared the same, albeit with fewer centrifuges on stream. CAMERA SURVEILLANCE A relative moderate advocating nuclear dialogue with big powers took charge of the Iranian nuclear energy agency in July. Continued... 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