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Edition: U.S. Article Comments (17) Video Save Email Print Reprints Most Popular Most Shared New Orleans elects first white mayor since 1978 12:42am EST Iran ratchets up atom work despite sanctions threat | Video 10:36am EST Obama's 2010 strategy taking shape 8:04am EST Putin scolds party after rally exposes discontent 05 Feb 2010 Amazon reshelves Macmillan titles but not e-books 12:24am EST New Orleans elects first white mayor since 1978 12:42am EST Iran says to start work on 20 percent nuclear fuel 5:48am EST James scores 47 as Cavs extend winning run to 11 5:38am EST Amazon reshelves Macmillan titles but not e-books 12:24am EST Toyota to recall Prius for brake glitch: dealer | Video 06 Feb 2010 Iran ratchets up atom work despite sanctions threat Reza Derakhshi and Fredrik Dahl TEHRAN Sun Feb 7, 2010 10:36am EST Related News Iran to start work on 20 pct nuclear fuel-president 2:43am EST U.S., Germany say Iran not ready for nuclear deal Sat, Feb 6 2010 Iran optimistic on uranium exchange: Mottaki Fri, Feb 5 2010 China: Big powers should talk with Iran, not punish Fri, Feb 5 2010 Iran says launches satellite rocket Wed, Feb 3 2010 Related Video Iran spurns nuclear offer 10:02am EST A technician explains the workings of a machine to a government visitor during the inauguration of the Fuel Manufacturing plant at the Isfahan Uranium Conversion Facility 440 kilometres (274 miles) south of Tehran April 9, 2009. Credit: Reuters/Caren Firouz TEHRAN (Reuters) - Iran's president gave instructions on Sunday for the production of higher-grade nuclear reactor fuel, prompting the United States and Germany to threaten carefully targeted new sanctions against Tehran. World | Germany President Mahmoud Ahmadinejad's announcement raised the stakes in Iran's dispute with the West, but he said talks were still possible on a nuclear swap offer by world powers designed to allay fears the Islamic Republic is making an atomic bomb. U.S. Defense Secretary Robert Gates said the response by Iran, a major oil exporter which says its nuclear program is to make electricity and not bombs, was very disappointing. "If the international community will stand together and bring pressure to bear on the Iranian government, I believe there is still time for sanctions and pressure to work," he told a news conference during a visit to Italy. There was international consensus to avoid "more hardship than is absolutely necessary" on the Iranian people, said Gates. Germany also raised the sanctions threat, while Britain said Iran's new plans would breach U.N. resolutions. "It may be that the sanctions screw needs to be or can be turned here and there. We need to consider very carefully what impact our options could have," German Defense Minister Karl-Theodor zu Guttenberg said, adding it should be made clear to Iran that "patience is at an end." Iran has already had three sets of sanctions imposed on it. China, which has veto power in the U.N. Security Council, has made clear it wants big powers to keep talking to Iran rather than impose new measures. The United States, China and other major powers have proposed that Iran send most of its low-enriched uranium abroad in return for nuclear fuel refined to a level of 20 percent, for use in the Tehran reactor producing medical isotopes. LASER TECHNOLOGY But Ahmadinejad has now told Iran's Atomic Energy Organization to start work on producing its own higher-grade nuclear reactor fuel for the medical research reactor. "We had told them (the West) to come and have a swap, although we could produce the 20 percent enriched fuel ourselves," Ahmadinejad said in a televised speech at a ceremony marking Iran's latest laser technology achievements. "We gave them two-to-three months' time for such a deal. They started a new game and now I (ask) Dr Salehi to start work on the production of 20 percent fuel using centrifuges," he said, referring to atomic energy chief Ali Akbar Salehi. But Salehi said his organization was only put on standby. "The president ordered the Atomic Energy Organization to be on standby, so that if the talks on nuclear fuel exchange does not reach an agreement, then the organization starts production, because this needs some preparations," he told IRNA news agency. State broadcaster IRIB quoted Ahmadinejad as saying that if world powers agreed to swap uranium without conditions, "then we would cooperate as well. We are ready for negotiations." Iran enriches uranium to a level of about 3.5 percent. Refined uranium can have both civilian and military uses, with more than 80 percent enrichment needed for an atom bomb. Gareth Evans, co-Chair of the International Commission on Nuclear Non-Proliferation and Disarmament, told Reuters he expected Iran had the ability to go to 20 per cent. "I don't think there's any doubt really that they'd be able to manage that (20 pct). There'd be some doubt I suppose about the time it would take," Evans said. CHINA AGAINST SANCTIONS The five permanent U.N. Security Council members -- United States, China, Russia, Britain and France -- plus Germany met on Friday to discuss the Iran nuclear issue and China voiced its opposition to new sanctions. Gary Smith, executive director of the American Academy think-tank in Berlin, said Ahmadinejad's statement was not a surprise. "It increases the likelihood of stronger sanctions but the Chinese are still the big question mark," he said. Ahmadinejad also said Iran had the capability to enrich uranium using laser technology, but IRNA said there was no plan to do this as the country already had enrichment centrifuges. On Tuesday, the president had appeared for the first time to drop long-standing conditions Tehran had set for accepting the U.N.-brokered fuel proposal, saying Iran was ready to send its enriched uranium abroad in exchange for nuclear fuel. Some analysts interpret the mixed messages from Tehran as a sign of splits linked to political turmoil after Iran's disputed June presidential election. Others see it as a delaying tactic. Iran said on Sunday it had arrested seven people accused of stoking unrest after the election, including some who it said were employed by the U.S. Central Intelligence Agency. The arrests were reported by IRNA before possible new anti-government protests on February 11, when Iran marks the 31st anniversary of the 1979 Islamic revolution that toppled the U.S.-backed shah. Iran's Foreign Minister Manouchehr Mottaki said on Friday he saw good prospects for a nuclear accord, but restated two conditions -- that any fuel exchange must be simultaneous and that Iran would determine quantities involved. He said on Saturday he had "a very good meeting" with the head of the U.N. nuclear agency on the fuel swap plan. International Atomic Energy Agency Director-General Yukiya Amano said he wanted dialogue with Iran to speed up. An Iranian Foreign Ministry spokesman said on Sunday Iran would host an international conference on nuclear disarmament in Tehran in May. Iran has often urged global nuclear disarmament. (Additional reporting by William Maclean; Dave Graham in Munich; Adam Entous in Rome; Editing by Charles Dick) World Germany Comments See All Comments (17) | Post Comment Feb 07, 2010 7:45am EST “despite an offer by world powers to provide it to the Islamic Republic” Very misleading – the West will give Iran no ironclad assurance it will ever get the 20% uranium back. It proposed a method of exchange that would ensure the West must stick to the deal and the West refused. Proving that they probably have no intention of giving Iran 20% uranium without a string of pre-conditions including Iran shutting down it’s centrifuges. OliverGoldsmith Report As Abusive Feb 07, 2010 7:47am EST Do your research: Iran needs to go nuclear for two reasons one they are rapidly depleting their oil reserves and two they need nuclear power to desalinate their water. They look upon us as hypocrites because we have nuclear reactors and bombs and want more reactors because of our GREEN ASS president…our foreign policy should be, “stay the hell out of other peoples business.” JoeGumbus Report As Abusive Feb 07, 2010 7:59am EST this so called “reaching out to iran” is a joke, how exactly is obama reaching out when he just pushing the same type of policies that bush was. iran is not even close to reaching a nuclear bomb but israel has hundreds, yet their nuclear bombs are not questioned. this is a joke. sidrock23 Report As Abusive Feb 07, 2010 8:04am EST Sorry to say this but Iran is right. They were asked to give up their 4% enriched fuel in return of a vague promise that, some day, France will give it back to them as 20% enriched pellets. Naturally, Iran asked for guarantees that this would really happen OR for this being a process were Iran gave France a fraction of the fuel and give up more as the initial processed batch was returned to them. The West, obeying Israel hysterical opposition to any interaction with Iran that did not involve bombing, refused any ‘compromise’. Iran is doing the natural thing now – they are going to make their own fuel because ‘the West’ would not agree to a deal that doesn’t involve humiliating and frustrating Iran. In the end, it’s coming down to this: is Israel’s influence powerful enough to trigger yet another Middle East war that would cause the West to, possibly permanently, lose the second richest oil supplier and live with sky-high oil prices that are likely to trigger a second 1920’s -style global depression? avrwc2 Report As Abusive Feb 07, 2010 8:32am EST How can you not realize the the readicals in Iran will sell their nuclear weapons to the highest bidder? they will also use it against israel. these ppl are insane and they cannot possess nuclear weapons all you israel haters, what would happen if israel put down its weapons? Answer: it would dissapear, oh and everyone in israel would be killed what would happen if the arabs love their children more than they hate the jews? there will be peace jomama187 Report As Abusive Feb 07, 2010 8:36am EST ohh did I meantion how scared eveyone was when russia couldnt account for their nuclear weapons– do you want a repeat jomama187 Report As Abusive Feb 07, 2010 8:52am EST Iran refused a deal that would give it reprocessed uranium for any peacefull purpose they need. Iran refused and then they turned around and said Publicly the West didnt give them a a deal. Are these the actions of ppl you want possesing nuclear weapons? another one for israel haters. How many non self defensive wars did israel start? answer they were all defensive or preemtive(GAZA hamastran) jomama187 Report As Abusive Feb 07, 2010 9:13am EST The comment above is completely divorced from ‘facts’ and a collection of propagandistic statements. The poster has no basis for his suggestion that Iran would sell its nukes if it had them. First of all, there is no evidence that Iran is actively working on making nukes, even though they would be naive if they didn’t, with bellicose Israel, armed to the teeth, armed in fact with nukes, taking every opportunity to threaten Iran and imply future attacks. Secondly, there is no evidence that Iran would sell its nukes if it had one. This is just another gratuitous scaremongering, typical of pro-Israel propaganda, trying to take advantage of the general public’s not taking the time to check ‘facts’. Iran is rich enough – they sell A LOT of oil – not to need to sell nukes on the black market. Thirdly, concerning, Iran’s alleged aggresive intentions, let’s compare Iran’s record of attacking other countries in the past 100 years (zero) to Israel’s since its inception. If there is a dangerously aggressive country in the ME, that is clearly Israel – and they have real nukes, much better than Iran’s imaginary weapons. Finally, Iranians are not Arabs so it’s not clear why the poster throws the ‘if the Arabs loved their children more…’ propaganda line. What does it mean anyway? That Arabs should submit to Israel’s constant blackmail and humiliation or else Israel will nuke or bomb their children dead? To conclude, again, Iran is doing the right thing. The ‘deal’ was clearly running against their national interest and they have naturally rejected it. History has no evidence or Iran attacking its neighbors ever since the Persian empire collapsed so all that scaremongering is nothing but propaganda or propaganda-inspired, uninformed screeds. avrwc2 Report As Abusive Feb 07, 2010 9:28am EST Iran’s oil peaked in 1978 at 6 million barrels per day and today struggles to pump 3 million. They know they have exaggerated their reserves to OPEC to maintain their quota and realize they are running out of oil sooner than everyone else realizes, therefore they need to go nuclear for the same reason everyone else is…their oil is almost gone. JoeGumbus Report As Abusive See All Comments (17) Add a Comment More from Reuters Toyota to recall Prius for brake glitch: dealer TOYOTA CITY, Japan (Reuters) - Toyota Motor Corp, which has recalled more than 8 million vehicles around the world for problems with unintended acceleration, has decided to recall its new Prius hybrid in Japan to fix a braking software glitch, a dealer said Sunday. | Video Blizzard paralyzes mid-Atlantic; two killed | Video Iran says arrests people hired by CIA Obama's 2010 strategy taking shape Tea Party welcomes conservative darling Palin Greece sticks to austerity plan: finance minister » More Top News WORK & LIFE: Steak: The new Wall St. bonus A New York steakhouse is offering bankers a tasty way to cope with their new bonus structures. Full Article Property tycoon takes a "grave" turn Tech whiz becomes celebrity at age 9 Lifestyle She's no newcomer If slow and steady wins the race, then "Up in the Air" actress Anna Kendrick has finally edged her way up in Hollywood. Full Article Can being an underdog help at Oscars? Video: The week in showbiz Entertainment © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal EVCJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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