U.N. nuclear body says Iran cooperating

VIENNA (Reuters) - The U.N. nuclear watchdog said on FridayIran was being more transparent about its nuclear programme butdoubts remained about whether it was entirely for peacefulpurposes and not to make atomic bombs.

The International Atomic Energy Agency's report highlightedIran's lack of credible answers to intelligence aboutexplosives and missile design work relevant to making atomicbombs, calling it "a serious concern".

"In the last four months, in particular, we have made quitegood progress in clarifying the outstanding issues," IAEADirector Mohamed ElBaradei said in a statement accompanying thereport assembled by senior IAEA inspectors.

"On that score, Iran in the last few months has provided uswith visits to many places that enable us to have a clearerpicture of Iran's current programme," ElBaradei said.

"However, that is not in my view sufficient."

The United States has accused Iran of having a secretprogramme to build nuclear weapons. Tehran denies the charges,saying the programme is only for power generation to meet thegrowing demands of its economy.

In its report, the IAEA said Iran was being more open withU.N. monitors than before but that Tehran was testingtechnology that could give it the means to enrich uranium muchfaster.

The IAEA findings, which also said Iran had failed to clearup all outstanding questions by an agreed February deadline,may be branded negative on balance by big powers and spur theU.N. Security Council to adopt more sanctions as early as nextweek.

IRAN'S STANCE

Iran said on Friday the IAEA's report showed its nuclearactivities were peaceful.

ElBaradei said one crucial requirement was for Iran toimplement the IAEA's Additional Protocol, which allows snapinspections that could verify that Tehran is not engaged insecret bomb work beyond declared civilian atomic energy sites.

"We need to have that authority as a matter of law," saidElBaradei.

Another issue was Iran's failure so far to address Westernintelligence, published for the first time by the report, aboutcoordination between uranium processing, missile warhead designwork and high-explosives tests, he said.

"The issue is still critical for us to be able to come to adetermination as to the nature of Iran's nuclear programme."

He said Iran should heed U.N. Security Council demands fora suspension of all uranium enrichment activity as a major steptowards easing mistrust.

But he expressed satisfaction U.N. inspectors had been ableto clarify all outstanding past issues about the programme,except for weapon making, in the past few months because Iranhad provided credible answers that had been withheld earlier.

"(The IAEA report) is another document which proves theIranian nation was right about the nature of its nuclearactivities," Iran's chief nuclear negotiator Saeed Jalili tolda news conference in Tehran.

"This report showed that our activities are peaceful," hesaid.

(Writing by Ralph Gowling, editing by Stephen Weeks)