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Russia spurned $10 billion U.S. deal to end Iran nuke program

SPECIAL TO WORLD TRIBUNE.COM
Thursday, October 24, 2002

WASHINGTON Ñ The United States said it offered Russia a deal worth $10 billion in exchange for ending its nuclear program in Iran.

U.S. officials acknowledged that Russia has rejected the American proposal. Instead, Moscow has accelerated talks on expanding nuclear cooperation with Iran.

A delegation from Iran's Atomic Energy Organization has been holding talks in Moscow over amending an agreement on the Bushehr light-water nuclear reactor. The talks are said to focus on the transfer of spent nuclear fuel to Russia, Middle East Newsline reported.

U.S. officials said the proposal called for a Russian halt of aid to Iran's strategic programs, such as intermediate- and long-range missiles as well as the construction of nuclear reactors. This would include suspension of the Bushehr nuclear reactor, an $800 million project carried out by Moscow.

In return, the officials said, the United States would provide the green light for the development of a new Russian industry worth $10 billion. Under the proposal, the United States would allow third countries to transfer spent nuclear fuel to Russia. Such a transfer requires U.S. approval as Washington has supplied most of the nuclear fuel to countries outside the former East Bloc.

"An end to Russian proliferation to Iran would allow the United States and Russia to reap the full promise of our new strategic relationship," State Department spokesman Richard Boucher said on Wednesday. "That would benefit Russia economically, politically and strategically far more than any short-term gain from sensitive transfers to Iran."

"One example is the potential transfer to Russia for storage of spent reactor fuel currently held by third countries, much of which requires U.S. approval for such transfer because the U.S. originally supplied the fresh fuel to those countries," Boucher added. "If the Russians end their sensitive cooperation with Iran, we have indicated we would be prepared to favorably consider such transfers, an arrangement potentially worth over $10 billion to Moscow."

U.S. officials said Iran is using the Bushehr project to develop an infrastructure for nuclear weapons. They said Iran plans to tip its intermediate- and long-range missiles with weapons of mass destruction.

A U.S. defense official said Iran failed in the latest test of its Shihab-3 missile. The official said the test of the intermediate-range missile took place in July and the missle failed to reach its desired range.

The official said tests were conducted in May and June. He said the United States does not have information of a reported test of a longer-range Shihab-4 missile in August.

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