Iran signals diplomatic initiative in nuclear row

By Hossein Jaseb

TEHRAN (Reuters) - Iran, defying the West over its disputed nuclear programme, said on Sunday it would soon unveil proposals aimed at resolving "international" and other problems.

Foreign Minister Manouchehr Mottaki made the announcement when asked about a meeting of six major powers in China next Wednesday to discuss whether to increase incentives to Tehran to curb work they fear could produce an atom bomb.

Iran, the world's fourth-largest oil producer, says it wants nuclear power to generate electricity to meet booming demand and has ruled out halting its activities in exchange for trade and other benefits.

"The Islamic Republic of Iran is trying to come up with a proposed package in an effort to resolve regional and international problems in dialogue with opposing parties," Mottaki said, without explicitly mentioning the nuclear dispute.

"The proposed package will have a new orientation and I think various parties, including 5 plus 1, can take advantage of this plan," he told reporters. "We will announce the details of this package in the near future."

He was referring to the five permanent members of the U.N. Security Council -- the United States, Russia, China, Britain and France -- and Germany who meet on April 16 in Shanghai to discuss whether to enhance incentives offered to Iran.

In June 2006, the world powers held out incentives to Iran, including civil nuclear cooperation and wider trade in civil aircraft, energy, high technology and agriculture, if Tehran suspended uranium enrichment.

But Iran has repeatedly rejected Western demands to stop enriching uranium, which can be used as fuel for power plants and to provide material for bombs if refined much further.