Clinton talks tough as Iran says ready for meeting

By Sue Pleming and Parisa Hafezi

WASHINGTON/TEHRAN (Reuters) - Secretary of State Hillary Clinton on Wednesday threatened crippling sanctions against Iran if it did not end its nuclear program after Tehran offered talks with major powers.

Clinton told U.S. lawmakers she was under no illusions about the difficulty of engaging Iran successfully.

"We are also laying the groundwork for the kind of very tough ... crippling sanctions that might be necessary in the event that our offers are either rejected or the process is inconclusive or unsuccessful," Clinton told the House of Representatives foreign affairs committee.

Clinton's tough talk came as Iran, in an official statement, said it believed discussions could resolve disputes between the Islamic republic and the West, but it said Tehran would press ahead with its work to develop atomic energy.

"The Islamic Republic of Iran ... welcomes constructive and fair talks based on mutual respect and believes current problems could be resolved through talks," the statement said.

"The Islamic Republic of Iran will continue its nuclear activities in an active interaction with the (United Nations) International Atomic Energy Agency in the framework of the NPT (Non-Proliferation Treaty) like other agency members," it said.

The statement was Tehran's response to an invitation this month by six world powers to discuss the nuclear issue, according to Iranian state television.

Last week, President Mahmoud Ahmadinejad said Iran had prepared proposals to end the dispute, without giving details.