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Iran says its uranium enrichment is for peaceful purposes only.
VIENNA, Austria -- A glimmer of optimism exists on the Iran nuclear standoff as the U.N.'s nuclear watchdog agency meets for a second day in Vienna.
International Atomic Energy Agency chief Mohammed ElBaradei says a deal to defuse the standoff is still possible, as diplomats outlined a possible compromise that would let Tehran pursue limited atomic research.
"I am still very much hopeful that in the next week an agreement could be reached," ElBaradei told reporters Monday.
While ElBaradei did not elaborate on his comments, diplomats told The Associated Press they believed it was linked to a confidential Russian proposal to allow Iran to enrich some uranium domestically.
ElBaradei said the IAEA board could formally take up the Iran issue as early as Tuesday afternoon.
It is not clear when, or even if, the board would take a vote to confirm its decision last month to report Iran to the U.N. Security Council.
Meanwhile, Iran President Mahmoud Ahmadinejad called on the IAEA to compensate Iran for its suspension of nuclear activities in 2003, state television reported Tuesday.
"The IAEA now has to compensate Iran for causing damage to the development of its science, technology and economy" due to the suspension of nuclear activities, state television quoted Ahmadinejad as saying, AP reported.
Also Tuesday, Russian Foreign Minister Sergey Lavrov is expected to meet U.S. President George W. Bush in Washington. Russia is a close political and business ally of Iran.
After a meeting with his Canadian counterpart in Ottawa Monday, Lavrov said a uranium enrichment joint venture between Iran and Russia was still on the table, but would require Tehran returning to a moratorium of its own testing, the Russian news agency Interfax reported.
"A set of measures should be taken," Lavrov said. "The joint venture will guarantee that all of the needs of Iran's peaceful nuclear sector will be met."
Moscow has offered to enrich uranium for Tehran in Russia and then ship it to Iran. But much still needs to be sorted out, according to ElBaradei.
"There are still a number of important uncertainties that need to be clarified," the IAEA chief told reporters Monday before the 35-nation panel's three-day meeting began.
"For that I expressed concern and regret that after three years we ought to have been able to clear these uncertainties. But, unfortunately the picture is still hazy and not very clear as to the scope of the program and as to the nature of that program."
ElBaradei called on all the parties to return to direct negotiations.
"There are many options, but one solution," he said. "The only solution I see is a comprehensive, political agreement that covers the nuclear issues, security issues, economic and political issues.
"These are all interrelated issues, and the earlier that we get all concerned parties back to the negotiating table the better we are able to find durable solution.
"I think confrontation could be counterproductive. It would not provide us with a durable solution."
'God-given right'
At the heart of the issue is Iran's program of uranium enrichment. Iran insists it has the right to enrich uranium on its own soil to augment a burgeoning domestic demand for electricity, but the United States and its European allies object.
Iran says it wants to free up its oil reserves -- estimated to be the fourth largest in the world -- for export. But the West -- particularly the United States -- believes Iran intends to build nuclear weapons, an allegation Iran denies.
Three years of negotiations with Britain, France and Germany -- known as the EU-3 -- failed to produce an agreement.
Iran has begun enrichment on a very small scale but has threatened to begin large-scale enrichment if the IAEA reports it to the Security Council.
"Referral to Security Council would definitely be a setback to the discussion and the talks," Ali Larijani, Iran's chief nuclear negotiator, said Sunday.
"To have a nuclear program, this is our God-given right, and no country will give up such a right. We have left all the doors open for discussion."
Larijani also warned that Iran could use its oil production "as a weapon" if the nuclear impasse worsens.
The last Iran-EU3 negotiations fell apart Friday, although German Foreign Minister Frank-Walter Steinmeier said the talks were held in a "very constructive atmosphere" and he remained hopeful that Tehran "will take the necessary steps for confidence-building measures in order to continue the dialogue which we all very much want."
Larijani had requested that session after meeting in Moscow with officials about a Russian proposal to enrich uranium for Tehran inside Russia, provided Iran cease enrichment activities inside its own borders.
But Larijani said Sunday that "the doors to discussion are open."
"We would like to continue our dialogue," he said.
