U.S. Eying 'All Options' On Iran

In a stern warning to Iran, President George W. Bush said "all options are on the table" if Iran refuses to comply with international demands to halt its nuclear program, noting he has already used force to secure the United States.

Mr. Bush's statement in an interview with Israeli TV broadcast late Friday was unusually harsh. Mr. Bush has supported using diplomacy to halt Iran's nuclear program, and U.N. Security Council sanctions should other diplomatic efforts fail.

In the interview, Mr. Bush said the United States and Israel "are united in our objective to make sure that Iran does not have a weapon."

But, he said, if diplomacy fails "all options are on the table. The use of force is the last option for any President. You know, we've used force in the recent past to secure our country."

Tehran decided earlier this week to resume uranium conversion at its nuclear facility in Isfahan, leading the U.N. nuclear watchdog agency to issue a warning to Iran.

The International Atomic Energy Agency's 35-nation board of directors expressed "serious concern" Thursday over Iran's resumption of nuclear activities that could lead to an atomic bomb.

Tehran also faces a deadline next month to stop uranium conversion at a plant in central Iran.

Diplomats speaking on condition of anonymity because they were not authorized to discuss the proceedings publicly said Tehran faced a Sept. 3 deadline to stop uranium conversion or face another possible referral to the Security Council, which has the power to impose crippling sanctions.

Mr. Bush welcomed the warning issued by the IAEA, which signaled that the West wants to give diplomacy time to ease the standoff.

But all of the United States' concerns weren't appeased, CBS News Foreign Affairs Analyst Pamela Falk said.

"The IAEA solution does not resolve Washington's fears about Iran's motives," said Falk, "and the downside is that the IAEA is back to 'square one' six months from now. But the upside is that the compromise keeps Iran from walking away from the non-proliferation treaty, as North Korea has done, and allows Iran to reverse course on its threats of confrontation."

Still, Iran, which insists its nuclear program is peaceful and geared only toward generating electricity, responded with indignation to the IAEA warning.

Even as the U.S. and Europe struggle to stop Iran's uranium development, the Iranians are pushing ahead on another track — construction of a heavy-water reactor that Iran says will be used only for peaceful purposes but which could also produce plutonium for a nuclear bomb.

It will take at least another four years for Iran to complete the reactor, making it a less immediate worry for the West than the uranium program.

But ultimately, the heavy-water reactor could prove more dangerous, since bombs made with plutonium are smaller and easier to fit onto a ballistic missile.

In a comprehensive package aimed at reining in Iran's nuclear program, Europe proposed that it give up the heavy-water project in return for a light-water reactor, seen by arms control experts as easier to monitor to ensure it's not being used for weapons.

Iran — which says its nuclear program is peaceful — rejected the entire package this week. The head of Iran's Atomic Energy Organization called the heavy-water reactor offer a "joke."

"We have developed this capability. The heavy-water project today is a reality," Gholamreza Aghazadeh, who is also vice president, said on state-run television. "This knowledge belongs to Iran. Nobody can take it from us. As they (Europeans) see Iran's determination, they will be forced to show flexibility and accept it."

While Iran has agreed to suspend parts of its uranium program as a gesture in negotiations with Europe, it has repeatedly rejected European calls for it to freeze the heavy-water project, which is moving full steam ahead.

"Work has not been halted there even for a day, allowing Iran to constantly advance its heavy-water project," lawmaker Rasoul Sediqi Bonabi told The Associated Press on Friday. Bonabi, a nuclear scientist, said Iran developed the plant because the world would not give it "a drop of heavy water."

Iran says the heavy-water reactor will have a range of peaceful applications. Iran intends to use the facility in the pharmaceutical, biological and biotechnological fields as well as in cancer diagnosis and control.

The 40-megawatt heavy-water reactor could produce enough plutonium for a nuclear weapon each year, an amount experts commonly say is 8.8 pounds.

The reactor — ringed with anti-aircraft guns as are all of Iran's nuclear facilities — is being built at the foot of a mountain in the deserts outside the small town of Khondab, 60 miles northwest of the central city of Arak.

Construction began in 2004 and is expected to be completed by 2009. Most Iranian nuclear facilities have portions built underground to protect them from airstrike — and Aghazadeh suggested that an underground portion may be built at Khondab as well.

"This knowledge belongs to us. It (the knowledge) won't be destroyed if attacked. Equipment could also be moved under the mountain," he said.

A plant next door began producing heavy water for the reactor last year, using water from the nearby Qara-Chai River. It produces 16 tons of heavy water a year, putting it on track to have the 90 tons needed by the time the reactor is finished.

Inspectors from the International Atomic Energy Agency, the U.N. nuclear watchdog, visited the Khondab facility in February 2003.