"We are disappointed by the lack of follow-up" to understandings reached when the six powers met with Iranian officials in Geneva on October 1, they said in a statement after a meeting in Brussels.

"Iran has not responded positively to the IAEA (International Atomic Energy Agency) proposed agreement for the provision of nuclear fuel for its Tehran research reactor," they said.

"Iran has not engaged in an intensified dialogue and in particular has not accepted to have a new meeting," permanent UN Security Council members Britain, China, France, Russia and the United States, plus Germany, added.

Many in the West suspect that the Islamic republic is covertly trying to build a nuclear weapon with highly-enriched uranium. Tehran insists it is only developing a civil energy programme, and has rejected attempts to force it to stop uranium enrichment.

In an attempt to draw Iran into talks and guarantee that its nuclear ambitions are peaceful, the six have offered to reprocess some of its low-enriched uranium abroad.

This uranium would have been converted into nuclear fuel and returned to Iran to power a research reactor in Tehran.

But on Wednesday, Iran rejected those plans brokered by the IAEA.

A senior EU official said the six did not discuss any further specific sanctions against Tehran, but that they planned to forge ahead with a dual-track strategy combining political and economic incentives with the threat of coercive action.

"They (sanctions) were not discussed in specific terms. There was a general discussion on sanctions. Why not? The answer is that all of these things are a matter of timing, and this was not the right time," he told reporters.

The head of the IAEA, Mohamed ElBaradei, holds out little hope for the talks, or the carrot and stick approach of incentives backed by the threat of sanctions currently being used.

"I think the Group of Six are partly meeting in an environment of desperation," he said in Berlin. "I haven't really talked to them but again, they talk about the dual track, but to me the second track is a dead-end street."

Despite this, the EU official, speaking on condition of anonymity insisted: "The dual track strategy remains the strategy."

ElBaradei also said he did not consider Iran's answer to be its last word.

"I do not consider that I have received a final answer," he said.

"We have not received any written response from Iran. What I got of course is an oral response, which basically said 'we need to keep all the material in Iran until we get the fuel,'" he said.

He said: "I believe that frankly the ball is very much in the Iranian court. I hope that they will not miss this unique and fleeting opportunity."

However the senior EU official said: "There have been so many statements from Tehran from different people. It's difficult to know what is the official Iranian response."

"The one thing that is clear is that we have not had a positive response," added, saying: "We have all drawn the conclusion that the Iranians have not accepted the offer. But the Iranians are very good at never quite saying no."

The IAEA is set to discuss the impasse next week, and the six powers hope to meet again soon after that but no firm date has been set, the official said.

earlier related report
Major world powers meet to discuss Iran nuclear snub
Brussels (AFP) Nov 20, 2009 - Major world powers met in Brussels Friday to plot their next move after Iran rejected a nuclear fuel deal, as the UN atomic watchdog's chief warned that Tehran risked losing a "unique" opportunity.

Representatives of the five permanent UN Security Council members -- Britain, China, France, Russia and the United States -- plus Germany met behind closed doors, part of long-running efforts to persuade Iran to curb its nuclear ambitions.

Officials declined to say whether the six would respond to Tehran's move, with EU foreign policy chief Javier Solana's spokeswoman saying only that "the meeting is to review the latest developments on the Iran nuclear issue."

The head of the UN's nuclear watchdog, Mohamed ElBaradei, held out little hope for the talks, or the carrot and stick approach of incentives backed by the threat of sanctions currently being used.

"I think the Group of Six are partly meeting in an environment of desperation," he said in Berlin. "I haven't really talked to them but again, they talk about the dual track, but to me the second track is a dead-end street."

Many in the West suspect that the Islamic republic is covertly trying to build a nuclear weapon. Tehran insists it is only developing a civil energy programme, and has rejected attempts to force it to stop uranium enrichment.

In an attempt to draw Iran into talks and guarantee that its nuclear ambitions are peaceful, the six have offered to reprocess some of its low-enriched uranium abroad.

But on Wednesday, Iran rejected those plans, involving more than 70 percent of its stock of low-enriched uranium (LEU) abroad, brokered by the UN atomic watchdog the International Atomic Energy Agency (IAEA).

The LEU would have been converted into nuclear fuel and returned to Iran to power a research reactor in Tehran. Very highly refined uranium can be used to fuel an atomic bomb.

However, ElBaradei said he did not consider that to be the Islamic republic's final word.

"I do not consider that I have received a final answer," he said.

"We have not received any written response from Iran. What I got of course is an oral response, which basically said 'we need to keep all the material in Iran until we get the fuel,'" he said.

He said: "I believe that frankly the ball is very much in the Iranian court. I hope that they will not miss this unique and fleeting opportunity."

US President Barack Obama has warned that Washington has "begun discussions with its international partners about the importance of having consequences."

"Our expectations are that over the next several weeks we will be developing a package of potential steps that we could take that will indicate our seriousness to Iran."

Russia played down the prospect of sanctions, but France has ruled out further talks sought by Iran on technical aspects of the deal.

Iranian President Mahmoud Ahmadinejad, meanwhile, again went on the offensive against Washington.

"If our nation sees they have changed their behaviour, dropped their arrogant attitude ... and return Iranian nation's rights and assets, the nation will accept that," he said in a televised speech.

Iran has refused to halt enrichment despite three sets of UN sanctions and it drew outrage in the West by disclosing in September a new enrichment plant, Fordo, which is being built inside a mountain near the holy city of Qom.

Iran's Foreign Minister Manouchehr Mottaki said Tehran wants more talks and is prepared to consider a simultaneous exchange of uranium for fuel for its Tehran reactor.

But that is unpalatable to the Western powers, who have tired of Iran's brinksmanship and alleged lack of good faith.

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