Bernard Allen (Cork North Central, Fine Gael)
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Question 234: To ask the Minister for Foreign Affairs the action being taken with regard to the potential development of a nuclear capability by Iran; and if he will make a statement on the matter. [7221/06]

Dermot Ahern (Louth, Fianna Fail)
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There are several dimensions to the action being taken with regard to the potential development of a nuclear capability by Iran. There is an ongoing investigation by the International Atomic Energy Agency, IAEA, to clarify the nature and scope of Iran's nuclear programme, certain aspects of which had not been declared, contrary to its obligations under the safeguards agreement with the agency. There have also been discussions with the E3-EU under the framework of the Paris Agreement of 2004 and, more recently, between Iran and the Russian Federation. Both sets of discussions are focused more on possible arrangements for future co-operation with Iran in the nuclear field, rather than examining past activities.

The IAEA board of governors adopted a further resolution on 4 February 2006 which set out a number of confidence-building measures that Iran should take and requested Iran to extend full and prompt co-operation to the agency, which the director general deemed was indispensable and overdue. In particular, Iran was requested to help the agency clarify possible activities which could have a military nuclear dimension. The resolution asked the director general to report to the UN Security Council that these steps are required, and also to report all relevant reports and resolutions. A further report from the director general is scheduled to be issued in advance of the next board of governors meeting on 6 to 10 March. It will thereafter also be sent to the Security Council.

Reporting Iran to the Security Council does not signal the abandonment of the investigatory process under way within the framework of the IAEA. Rather, it is an effort to further strengthen the authority of the IAEA and to encourage Iran to show the necessary co-operation and transparency that has so far been lacking.

Negotiations between the E3-EU and Iran are suspended following Iran's decision in August 2005 to recommence conversion of uranium at its Isfahan facility. This action was in breach of the Paris Agreement signed by Iran and the E3-EU, France, Germany and the United Kingdom, in November 2004. Within the framework of the agreement, there had been several rounds of these negotiations on long-term arrangements in the areas of political and security issues, technology and co-operation and nuclear issues and the E3-EU had presented detailed written proposals, before Iran's actions in August brought the process to an end.

Last December, officials representing the E3-EU and Iran met in Vienna to explore whether there was a basis for a resumption of negotiations. There was no concrete outcome from the talks but both sides agreed to meet again in January. Before the meeting took place, Iran decided to recommence enrichment related activities.

Iran has held discussions recently with Russia regarding the latter's proposal that Iran's uranium fuel be enriched on Russian soil rather than in Iran. Iran has been giving some mixed signals on whether it could accept such a proposal. Further talks on the matter were held earlier this week in Moscow.

Iran's decision to resume enrichment related activities at its nuclear sites has greatly jeopardised further talks to find an agreed solution consistent with IAEA resolutions. I strongly urge Iran to immediately reconsider its actions and refrain from proceeding with its nuclear programme. This issue can be resolved by negotiations but it will require a co-operative and transparent approach on the part of the Iranian Government with the IAEA, and the implementation of the confidence-building measures set out by the board of governors.