Iran faces benefits or sanctions choice

[tocqueville]

By Evelyn Leopold and Carol Giacomo
15 minutes ago

UNITED NATIONS (Reuters) - European officials on Tuesday worked on a package of carrots and sticks for Iran after major powers failed to agree on a U.N. resolution aimed at curbing Tehran's nuclear ambitions, diplomats said.

Political directors of the United States, Russia, China, Britain and France, along with Germany, authorized Britain, France and Germany, known as the EU3 negotiators with Iran, to prepare the package of benefits and penalties by Monday.

They had planned to offer the package after the U.N. Security Council adopted a resolution demanding that Iran halt nuclear activities the West believes are a cover for bomb making, but no agreement could be reached on the resolution.

U.S. Secretary of State Condoleezza Rice backed the new approach. "The United States has long supported an effort by the Russians, an effort by the EU, to make available to the Iranian regime, should they choose to do so, a way to fulfill aspirations for a civil nuclear program," Rice said.

http://news.yahoo.com/s/nm/20060509/ts_nm/nuclear_iran_dc_15