IAEA Chief Hopeful on Iran Nuclear Talks

"We have a hiccup right now," ElBaradei, director general of the International Atomic Energy Agency (IAEA), said at a forum on nuclear safety issues in Moscow. "I am optimistic that in the coming months we will see a resumption of these negotiations. We need to find a face-saving solution."

EU talks with Tehran -- spearheaded by the so-called EU-3 of Britain, France and Germany, as well as EU foreign policy chief Javier Solana -- broke down in August after Tehran resumed uranium conversion activities. The United States claims these activities are a cover for developing nuclear weapons.

Last month the IAEA threatened to refer Tehran to the UN Security Council over its nuclear program, but not before a November IAEA meeting. The European Union has so far resisted calls for Iran to be referred to the UN, hoping to win pledges from Tehran on its nuclear plans, in exchange for trade and other benefits.

At Wednesday's forum in Moscow, organized by the Nuclear Threat Initiative, a US pressure group, ElBaradei said that Russia shared the same broad goals as other leading members of the international community as regards Iran's nuclear program. Washington has voiced worries about Moscow's building of the Bushehr nuclear power plant in Iran, suspecting that this could help Tehran develop an offensive nuclear capacity.

"I think everybody, Russia included, agrees that nobody wants to see Iran develop nuclear weapons. On the strategic goal there is consensus," ElBaradei said. "Russia, like all other members, has been trying to see what is the best tactic to achieve that objective. You have differences on the best tactics to be pursued, but that is democracy."

Diplomat resigns

Meanwhile, one of Iran's most prominent diplomats, Mohammad Javad Zarif, has resigned as a member of the country's nuclear negotiating team, the official news agency IRNA reported Wednesday.

Zarif, who is ambassador to the United Nations, is widely considered a moderating influence over foreign policy and in favor of improving ties with the West. The report, quoting an unidentified source, did not say why Zarif quit the nuclear negotiating team, which has been almost totally changed following the June presidential election victory of hardliner Mahmoud Ahmadinejad.

Leading negotiator Hassan Rowhani, also a moderate, was replaced by ultra-conservative Ali Larijani, who is seen as being at the opposite end of the regime's political spectrum to diplomats like Zarif.

Tensions with the West have also escalated after Iran slammed the door on proposals from Britain, France and Germany that it abandon fuel-cycle technology in return for incentives, and decided to resume uranium conversion work in defiance of an agreement with the EU-3.

During the tenure of former president Mohammad Khatami, Zarif played an active role in efforts to improve Iran's foreign relations. He was notably involved in closed-door talks with the United States in 2001 on the formation of a post-Taliban government for Afghanistan, followed by secret contacts prior to the US invasion of Iraq.

Moderates worried

The uncompromising stance of Iran's new hardline authorities in a stand-off over the country's nuclear program is worrying some Iranian officials and leading to overt criticism. The issue is not whether or not the country should hang on to its nuclear program, but more on how the regime should go about it.

The first to speak out was defeated presidential contender Akbar Hashemi Rafsanjani, who on Friday appealed to hardliners to exercise restraint -- notably when it came to their increasingly violent rhetoric.

"It is about diplomacy rather than slogans," the still-powerful cleric said in a sermon last week. "It is about being reasonable, negotiating and being diplomatically active." He reminded his fellow Iranians that the stakes are "very serious."

On Tuesday moderate deputies in the Iranian parliament also warned of the economic consequences of international isolation and sanctions, complaining the new nuclear team is "failing to respect national interests in their statements."

In an open letter, the minority group said Iran was at a "sensitive stage" and noted the "freefall of the Tehran stock exchange" where nuclear jitters are hitting investor confidence. "Sadly, the first action of the government was to change the nuclear negotiators and deprive itself of their experience and the trust they built up," Hassan Afarideh, a moderate MP, said in parliament.

"Certain officials and negotiators keep using threatening and intimidating language. It is clear we cannot reach a result through diplomacy with this kind of language," he said, taking a clear shot at Larijani, who threatened to respond to last month's tough resolution passed by the IAEA by limiting inspections and resuming enrichment.