By Parisa Hafezi and Fredrik Dahl
TEHRAN (Reuters) - Iran on Saturday again ruled out haltinguranium enrichment even as the EU's top diplomat delivered anoffer of enhanced incentives to shelve sensitive nuclearactivity.
European Union foreign policy chief Javier Solanareaffirmed the six world powers behind the package wanted Iranto suspend enrichment during negotiations on the offer -- aprecondition Tehran has repeatedly rejected.
"It is an offer that is going to be considered (by Iran)and we are waiting for the answer that they hope will be soon,"Solana told a news conference during a rare trip to Tehran.
"We continue to ask for suspension, suspension during thetime of negotiations and we will (then) see the outcome ofnegotiations," he said after presenting the revised package oftrade and other benefits to Foreign Minister ManouchehrMottaki.
He said he hoped the powers' overture, tailored to coaxTehran into stopping pursuit of enrichment ability, a possiblepathway to atom bombs, would be a springboard to negotiations.
Solana said the package included help for Iran to develop acivilian nuclear programme with light water reactors -- seen asless prone to diversion into bombmaking than technology Tehrannow has -- and legally-binding nuclear fuel supply guarantees.
"We are offering a proposal which we would like to be thestarting point for real negotiations, (one) that would allowIran to build a modern nuclear energy programme," he said.
"It is full of opportunities for Iran," he said,reiterating that the six powers -- the United States, Germany,France, Britain, China and Russia -- were ready to fullyrecognise Iran's right to have nuclear energy for peacefulpurposes.
Flush with record oil revenues that have helped itwithstand U.N. sanctions imposed over its nuclear defiance,Iran has long ruled out ending its quest for its own enrichmentindustry.
But the Islamic Republic says it is ready to engage inunconditional negotiations with the world powers.
"Iran's view is clear: any precondition is unacceptable,"government spokesman Gholamhossein Elham said when asked aboutthe batch of sweeteners, originally proposed two years ago. "Ifthe package includes suspension it is not debatable at all."
BUSH "DISAPPOINTED" AT IRANIAN STANCE
Iran has not formally rejected the offer but diplomatsplayed down hopes of a breakthrough.
U.S. President George W. Bush voiced disappointment atElham's statement.
"I am disappointed that the Iranian leaders rejected thisgenerous offer out of hand," Bush told a joint news conferencewith French President Nicolas Sarkozy, adding it was a signthat Iran's leadership was willing to isolate its peoplefurther.
Sources on both sides said Iranian officials and Solana hadstill agreed to resume efforts to find a diplomatic solution toa standoff that has helped push oil prices to record highs.
"A new diplomatic path has been opened ... this will be abasis for fresh nuclear talks," said an Iranian official, whodeclined to be named. A European diplomat said: "Both sidesagreed to remain in contact and continue working."
Foreign ministers of the powers, joined by Solana, said ina letter accompanying the offer: "We are convinced that it ispossible to change the present state of affairs. We hope thatIran's leaders share the same ambitions."
They added: "Formal negotiations can start as soon asIran's enrichment-related and reprocessing activities aresuspended."
Analysts believe offering Iran security guarantees, an ideafloated by Russia, could help end the deadlock, seeing suchguarantees as Iran's fundamental goal given the Bushadministration's "regime change" policy towards it.
But the United States last month said major powers had noplans to make such security pledges to Tehran.
Iran is under sanctions for hiding its programme from theU.N. nuclear watchdog in the past, continuing to curbinspections aimed at verifying the nuclear work is whollycivilian, and refusing to suspend uranium enrichment.
Washington and European allies have warned of broadersanctions if Iran rejects the package presented by Solana.
The world's fourth-largest crude producer vows not to stopactivities it insists are only for generating electricity.
Mottaki suggested Iran was ready to engage in negotiations,but said its response to the major powers' incentives waslinked to their reaction to Tehran's own package of proposalsaimed at defusing the row, submitted to the EU and others lastmonth.
"It is natural that Iran's response ... will depend on thelogical and constructive response of (the six powers) to theIranian package," Mottaki said. Diplomats say Iran's proposalsfailed to allay concerns about its uranium enrichmentprogramme.
The United States says it wants a diplomatic solution buthas not ruled out military action as a last resort.
(Additional reporting by Hashem Kalentari and ZahraHosseinian; Writing by Mark Heinrich and Fredrik Dahl; Editingby Andrew Roche)
