But in a much-anticipated address to the UN General Assembly, Iranian President Mahmoud Ahmadinejad warned that Tehran would reconsider its stance if it was subjected to "a language of force and threat."

France, which is trying with Britain and Germany to persuade Iran to renounce any nuclear arms ambitions, wasted little time in saying it was unconvinced by the Iranian's proposals.

"What I heard today makes me say the option of referral ... to the UN Security Council remains on the agenda," Foreign Minister Philippe Douste-Blazy told reporters.

US Secretary of State Condoleezza Rice declined immediate comment, but urged Tehran to hold "realistic discussions" on the standoff.

Rice said outside the UN General Assembly that she had not had time to read the Iranian proposals. But she told reporters, "I hope Iran will engage in realistic discussions with the rest of the world about what is possible.

Ahmadinejad proposed as a "further confidence-building measure" a pledge to "engage in serious partnership with private and public sectors of other countries in the implementation of the uranium-enrichment program in Iran."

"This represents the most far-reaching step, outside all requirements of the NPT (Non Proliferation Treaty), being proposed by Iran as a further confidence building measure," he noted.

He also suggested that South Africa join the negotiations to resolve the crisis over Tehran's nuclear program, noting Pretoria's active role in the International Atomic Energy Agency's (IAEA's) board of governors.

Iran agreed to suspend sensitive uranium enrichment activities last November under the so-called Paris agreement, but Tehran resumed its fuel-cycle work in August after angrily rejecting the latest offer by Britain, France and Germany.

The three EU countries want to wean Tehran off its suspected nuclear arms ambitions with economic and security incentives.

Ahmadinejad told reporters here that the negotiations should involve other countries, specifically mentioning South Africa. "It is not going to be limited to a few countries," he said.

Taking the podium after Ahmadinejad, South African President Thabo Mbeki told the General Assembly: "With regard to the issue of Iran, we firmly believe that negotiations should resume, and the matter settled within the context of the provisions of the NPT and with the full participation of the

Mbeki made no reference to the Iranian proposal.

Ahmadinejad, who met with the British, French and German foreign ministers on Thursday, unveiled his new proposals two days before the IAEA was to meet in Vienna to consider a US and European Union push to haul Tehran before the UN Security Council for possible sanctions for resuming sensitive fuel cycle work.

He said that the UN General Assembly should also create an ad hoc committee to study and report on "possible practical measures and strategies for complete disarmament."

"If some try to impose their will on the Iranian people through resort to a language of force and threat with Iran, we will reconsider our entire approach to the nuclear issue," the Iranian leader warned.

He accused the United States of a policy of "nuclear apartheid" that would bar other NPT members from access to material, equipment and peaceful nuclear technology.

"We are concerned that once certain powerful states completely control nuclear energy resources and technology, they will deny access to other states and thus deepen the divide between powerful countries and the rest of international community," he said.

He made clear Iran's intention to pursue uranium enrichment activities, saying: "peaceful use of nuclear energy without possession of nuclear fuel cycle is an empty proposition."

In an interview earlier Saturday with CNN, the Iranian leader said his country was "determined" to have a civilian nuclear program, and did not rule out pushing oil prices higher in response to any hostile Western actions.

Asked about remarks by some Iranian officials that Tehran might provoke a rise in oil prices, Ahmadinejad said: "I think any intelligent, healthy, smart human being should use every resource in order to maintain his or her freedom and independence."

Ahead of the speech, a top Iranian official in Tehran warned that his country was prepared for any eventuality, including a military strike, but did not think the case would end up before the Security Council.

While Washington has the support of Britain, France and Germany for hauling Iran before the Council, Russia as a permanent council member could veto any measure against Iran.

China, another permanent veto-wielding council member, is also resisting action against Tehran, and US diplomats say there is little point to a referral if both Moscow and Beijing oppose the move.

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