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Iran says it will cooperate with nuclear agency

Uranium enrichment will continue, however, Ahmadinejad says

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TEHRAN, Iran (CNN) -- Iran has agreed to increase cooperation with the U.N. nuclear watchdog but did not commit to halting its uranium enrichment program, an agency spokeswoman said Thursday.

The announcement came after International Atomic Energy Agency Director General Mohamed ElBaradei met Thursday in the Iranian capital with two of Iran's top nuclear officials.

"I don't think the issue of enrichment right now, emotional as it is, is urgent," ElBaradei said. "So, we have ample time to negotiate a settlement by which, as I said, Iran's need for nuclear power is assured and the concern of the international community is also put to rest."

But U.S. Secretary of State Condoleezza Rice, speaking in Washington at a joint news conference with Canadian Foreign Minister Peter McKay, said Iran "continues to defy" international demands. (Watch Rice again caution Iranian leaders -- 0:59)

The United States is still committed to diplomacy, she said, but the Islamic republic must agree to stop uranium enrichment before the Security Council takes up the issue at month's end.

Rice added that Iran has done nothing to indicate it will do so, and unless Tehran adheres to the demands of the international community, "There will have to be some consequences for that action and that defiance."

Western nations are concerned that Iran plans to build nuclear weapons. The White House warned this week that Iran was moving in the "wrong direction" after its announcement about enriching uranium at a level of concentration high enough to operate a nuclear power plant. (Watch as the issue sparks diplomatic talks and chants in the streets -- 2:07)

Tehran has said it has a right to produce nuclear fuel for use in electric power plants.

Rice said Wednesday that "no one is questioning the right of Iran to have civil nuclear power," but such a program can exist only if there is no threat of nuclear weapons proliferation.

Iran agreed to work with IAEA inspectors to clear up "gaps" in the history of its nuclear program, agency spokeswoman Melissa Fleming said. However, no breakthrough was reached over the uranium enrichment issue, she said.

According to the state-run Islamic Republic News Agency, ElBaradei told Iranian officials "that Iran should not deal with the matter emotionally. The request is that Iran suspend uranium enrichment for a specific period for confidence-building with the international community."

Fleming said, "This is an issue that they listened to. They did not, however, make any commitments."

Defiant still

President Mahmoud Ahmadinejad, speaking Thursday to university students and officials in Iran's Khorassan Razavi province, said Iran would step up its uranium enrichment program. He reiterated that the program is for energy purposes.

He also dismissed ElBaradei's call for a temporary halt to uranium enrichment.

Any concessions made by Iran would be used against it, and "No one can ever force us to back down an inch from the path that we are currently treading," Ahmadinejad said, according to IRNA.

He added that Iran's "right to nuclear energy is non-negotiable."

And in comments directed toward nations concerned by Tuesday's announcement that Iran had processed fuel-grade uranium, Ahmadinejad said "keep on being angry and die from it," IRNA reported.

Nuclear questions

Some Western nations have expressed skepticism about Iran's technology claim.

Russian nuclear expert Yevgeny Velikhov, president of the Kurchatov Institute, told the Interfax news agency that Iran's claims are "fairy tales." Former U.N. weapons inspector David Albright said Tuesday's announcement was "mostly about showbiz and politics."

"I think the Iranians want the world to believe that they are like North Korea -- they've accomplished the goal, 'You can't stop us,' " said Albright, who leads the Institute for Science and International Security. "But, in fact, they are a long way from accomplishing the goal, and they can be stopped through diplomatic means."

The U.N. Security Council has called on Iran to suspend its uranium enrichment activities by the end of April and asked ElBaradei to report back on the issue at that time.

According to IRNA, top Iranian nuclear negotiator Ali Larijani said that "Iran is committed to its undertakings and will announce its stance during the remaining two weeks."

After his meetings in Tehran, ElBaradei said inspectors have not been able to confirm Iran's claim to have produced enriched uranium at its Natanz nuclear fuel plant. Nor have they found evidence that Iran has diverted nuclear material for weapons purposes, "But the picture is still hazy and not very clear," he said.

ElBaradei urged Iran to take "confidence-building" steps and resume talks with Britain, France and Germany on its nuclear program. Talks stalled in January when Tehran announced it would resume nuclear fuel processing.

China seeks diplomacy

China announced Thursday it was sending a senior envoy to Iran and Russia to urge restraint in a standoff with the West.

China, a permanent security council member that receives much of its oil from Iran, has opposed the use of economic sanctions or military action against the country in favor of diplomacy.

"We are worried about these developments," said Chinese foreign ministry spokesman Liu Jiandao, according to The Associated Press. "We hope the parties should exercise restraint and not take any actions that lead to further escalation, so we can solve the question properly through dialogue and diplomacy."

On Wednesday, Iran's deputy nuclear chief said his country intends to increase production at Natanz to the facility's capacity of 54,000 centrifuges.

Mohammad Saeedi told Iran's Mehr News Agency that at capacity, Natanz would provide enough low-grade uranium to operate a 1,000-megawatt power station.

Saeedi gave no timetable to reach the 54,000-centrifuge operation but said the country would have 3,000 centrifuges operational by next March. Nuclear weapons require several thousand centrifuges.

U.S. calls for action

On Wednesday, Rice said it is "time for action" on international demands for Iran to cease its uranium enrichment activities.

"When the Security Council reconvenes, I think it will be time for action," she said. "We can't let this continue."

Rice did not elaborate on what type of action the Security Council should take, but senior State Department officials said it could include a move to impose a travel ban against Iranian officials and freezing assets of the regime.

Foreign ministers in Russia and Britain also joined the United States in expressing concern about Iran's announcement.

CNN's Stan Grant and David Ensor contributed to this report.

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