Rice swipes at IAEA, urges bold action on Iran

By Sue Pleming

SHANNON (Reuters) - U.S. Secretary of State Condoleezza Rice scolded the U.N.'s atomic watchdog agency on Wednesday over its Iran strategy and called for diplomacy with "teeth" to end Tehran's nuclear plans.

While repeating the U.S. stand that "all options" remained on the table -- a reference to military action against Tehran -- Rice sought to ease fresh concerns over talk of war.

"The diplomatic track can work but it has to work both with a set of incentives and a set of teeth," she said.

The United States has criticized a deal International Atomic Energy Agency (IAEA) chief Mohamed ElBaradei has made with Iran to answer long-standing questions about its nuclear activities.

Washington and its European allies argue the IAEA moves divert attention from U.N. Security Council demands that Iran suspend uranium enrichment and grant broader inspections.

Rice, who in June accused ElBaradei of "muddying the message" to Iran, voiced strong irritation with the IAEA chief, without naming him.

"The IAEA is not in the business of diplomacy. The IAEA is a technical agency that has a board of governors of which the United States is a member," Rice told reporters traveling with her to Israel and the Palestinian Territories.

"It is not up to anybody to diminish or to begin to cut back on the obligations that the Iranians have been ordered to take."