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West mulls Iran sanctions; US, Tehran swap warnings

BRITAIN: Western powers meet in London to discuss tightening U.N. sanctions on Iran amid a flurry of tough and sometimes colourful talk between Washington and Tehran over the Islamic Republic's nuclear programme.

President Mahmoud Ahmadinejad declared Iran had "no brake and no reverse gear", prompting U.S. Secretary of State Condoleezza Rice to say Tehran needed a "stop button" for a programme the West fears is geared to producing nuclear arms. U.S. Vice President Dick Cheney said all options were on the table following Iran's refusal to heed a U.N. deadline for halting uranium enrichment.

An Iranian deputy foreign minister responded by saying Iran was prepared even for war. British officials hosting Monday's talks of the five permanent United Nations Security Council members plus Germany say they are resolved to tackle the issue using diplomacy.

"I am quite clear the Americans want to resolve this through diplomatic means, want to exert every effort to addressing our common concerns and resolving them through political, diplomatic, economic measures," a senior British official said.

Washington has deployed a second aircraft carrier to the Gulf with supporting warships, a move widely seen as a warning to Iran.

Iran insists it is entitled to nuclear power to generate electricity and wants to negotiate with the Europeans and even Washington without giving up its right to enrich uranium. The London meeting is likely to discuss adding a travel ban on senior Iranian officials and restrictions on non-nuclear business to existing sanctions banning transfers of nuclear technology.

Government sources said support for business with Iran - some $20 billion worth of export credits provided by European agencies - would be looked at closely, as would arms exports.

Senior British officials say they are encouraged by signs that the current U.N. sanctions are having an impact in Tehran.

"President Ahmadinejad's standing seems to have diminished and I think that's helpful for rational discussion and debate," said one.

London, Monday, Reuters

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