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    TABLE OF CONTENTS

    Chapter 1

    INTRODUCTION

    Chapter 2

    OVERVIEW OF IRAN NUCLEAR PROGRAM

    Overview

    History

    Chapter 3

    INTERNATIONAL ATOMIC ENERGY AGENCY

    February 2007 Report

    May 2007 Report

    November 2007 report

    February 2008 report

    May 2008 report

    September 2008 report

    February 2010 Report

    May 2010 Report

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    Chapter 4

    IRAN WORK ON NUCLEAR PROGRAM

    United States

    May 2012 Baghdad negotiations

    Chapter 5

    NUCLEAR DECLARATION

    Tehran Nuclear Declaration

    Attacks on Iranian nuclear scientists

    Nuclear power as a political issue

    Iran's nuclear program and the NPT

    Iranian statements on nuclear deterrence

    Nuclear Weapon Free Zone in the Mideast

    REFERENCES

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    Chapter 1

    INTRODUCTION

    The nuclear program of Iran was launched in the 1950s with the help of

    the United States as part of the Atoms for Peace program. The participation

    of the United States and Western European governments in Iran's nuclear

    program continued until the 1979 Iranian Revolution that toppled the Shah

    of Iran.

    After the 1979 revolution, the clandestine research program was disbanded

    by Ayatollah Ruhollah Khomeini, who had serious religious reservations

    about nuclear weapons, which he considered evil in terms of Muslim

    jurisprudence. Small scale research restarted during the Iran-Iraq War, and

    underwent significant expansion after the Ayatollah's death in 1989. Iran's

    nuclear program has included several research sites, two uranium mines, a

    research reactor, and uranium processing facilities that include three known

    uranium enrichment plants.

    Iran's first nuclear power plant, Bushehr I reactorwas complete with major

    assistance of Russian government agency Rosatom and officially opened on

    12 September 2011. Iran has announced that it is working on a new 360 MW

    nuclear power plant to be located in Darkhovin. The Russian engineering

    contractorAtomenergoprom said the Bushehr Nuclear Power Plant would

    reach full capacity by the end of 2012. Iran has also indicated that it will

    seek more medium-sized nuclear power plants and uranium mines in the

    future.

    In November 2011, the International Atomic Energy Agency (IAEA) Board

    of Governors rebuked Iran following an IAEA report indicating Iran had

    undertaken research and experiments geared to developing a nuclear

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    weapons capability. For the first time, the IAEA report outlines, in depth, the

    countrys detonator development, the multiple-point initiation of high

    explosives, and experiments involving nuclear payload integration into a

    missile delivery vehicle. Iran rejected the details of the report and accused

    the IAEA of pro-Western bias and threatened to reduce its cooperation with

    the IAEA

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    Chapter 2

    OVERVIEW OF IRAN NUCLEAR PROGRAM

    Overview

    The controversy over Iran's nuclear programs centers in particular on Iran's

    failure to declare sensitive enrichment and reprocessing activities to the

    International Atomic Energy Agency (IAEA). Enrichment can be used to

    produce uranium for reactor fuel or (at higher enrichment levels) forweapons. Iran says its nuclear program is peaceful, and has enriched

    uranium to less than 5%, consistent with fuel for a civilian nuclear power

    plant. Iran also claims that it was forced to resort to secrecy after US

    pressure caused several of its nuclear contracts with foreign governments to

    fall through. After the IAEA Board of Governors reported Iran's

    noncompliance with its safeguards agreement to the UN Security Council,the Council demanded that Iran suspend its nuclear enrichment activities

    while Iranian President Mahmoud Ahmadinejad has argued that the

    sanctions are "illegal," imposed by "arrogant powers," and that Iran has

    decided to pursue the monitoring of its self-described peaceful nuclear

    program through "its appropriate legal path," the International Atomic

    Energy Agency.

    After public allegations about Iran's previously undeclared nuclear activities,

    the IAEA launched an investigation that concluded in November 2003 that

    Iran had systematically failed to meet its obligations under its NPT

    safeguards agreement to report those activities to the IAEA, although it also

    reported no evidence of links to a nuclear weapons program. The IAEA

    Board of Governors delayed a formal finding of non-compliance until

    September 2005, and reported that non-compliance to the UN Security

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    Council in February 2006. After the IAEA Board of Governors reported

    Iran's noncompliance with its safeguards agreement to the United Nations

    Security Council, the Council demanded that Iran suspend its enrichment

    programs. The Council imposed sanctions after Iran refused to do so. A May

    2009 U.S. Congressional Report suggested "the United States, and later the

    Europeans, argued that Iran's deception meant it should forfeit its right to

    enrich, a position likely to be up for negotiation in talks with Iran."

    In exchange for suspending its enrichment program, Iran has been offered "a

    long-term comprehensive arrangement which would allow for the

    development of relations and cooperation with Iran based on mutual respect

    and the establishment of international confidence in the exclusively peaceful

    nature of Iran's nuclear program." However, Iran has consistently refused to

    give up its enrichment program, arguing that the program is necessary for its

    energy security, that such "long term arrangements" are inherently

    unreliable, and would deprive it of its inalienable right to peaceful nuclear

    technology. In June 2009, in the immediate wake of the disputed Iranianpresidential election, Iran initially agreed to a deal to relinquish its stockpile

    of low-enriched uranium in return for fuel for a medical research reactor, but

    then backed out of the deal. Currently, thirteen states possess operational

    enrichment or reprocessing facilities, and several others have expressed an

    interest in developing indigenous enrichment programs. Iran's position was

    endorsed by the Non-Aligned Movement, which expressed concern about thepotential monopolization of nuclear fuel production.

    To address concerns that its enrichment program may be diverted to non-

    peaceful uses, Iran has offered to place additional restrictions on its

    enrichment program including, for example, ratifying the Additional

    Protocol to allow more stringent inspections by the International Atomic

    Energy Agency, operating the uranium enrichment facility at Natanz as a

    multinational fuel center with the participation of foreign representatives,

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    renouncing plutonium reprocessing and immediately fabricating all enriched

    uranium into reactor fuel rods. Iran's offer to open its uranium enrichment

    program to foreign private and public participation mirrors suggestions of an

    IAEA expert committee which was formed to investigate the methods to

    reduce the risk that sensitive fuel cycle activities could contribute to national

    nuclear weapons capabilities. Some non-governmental U.S. experts have

    endorsed this approach. The United States has insisted that Iran must meet

    the demands of the UN Security Council to suspend its enrichment program.

    In every other case in which the IAEA Board of Governors made a finding

    of safeguards non-compliance involving clandestine enrichment or

    reprocessing, the resolution has involved (in the cases of Iraq and Libya) or

    is expected to involve (in the case of North Korea) at a minimum ending

    sensitive fuel cycle activities. According to Pierre Goldschmidt, former

    deputy director general and head of the department of safeguards at the

    IAEA, and Henry D. Sokolski, Executive Director of the Nonproliferation

    Policy Education Center, some other instances of safeguards noncompliancereported by the IAEA Secretariat (South Korea, Egypt) were never reported

    to the Security Council because the IAEA Board of Governors never made a

    formal finding of non-compliance. Though South Korea's case involved

    enriching uranium to levels near weapons grade, the country itself

    voluntarily reported the isolated activity and Goldschmidt has argued

    "political considerations also played a dominant role in the board's decision"to not make a formal finding of non-compliance.

    Estimating when Iran might possibly achieve nuclear "breakout" capability,

    defined as having produced a sufficient quantity of highly-enriched uranium

    to fuel a weapon - if a working design for one existed and the political

    decision to assemble it was made - is uncertain. A detailed analysis by

    physicists at the Federation of American Scientists concludes that such an

    estimate would depend on the total number and overall efficiency of the

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    centrifuges Iran has in operation, and the amount of low-enriched uranium it

    has stockpiled to serve as "feedstock" for a possible high-enrichment

    program. A 23 March 2012 U.S. Congressional Research Service report

    quotes the 24 February 2012 IAEA report saying that Iran has stockpiled 240

    pounds of 20-percent-enriched uranium - an enrichment level necessary for

    medical applications - as an indication of their capacity to enrich to higher

    levels. The authoritarian political culture of Iran may pose additional

    challenges to a scientific program requiring cooperation among many

    technical specialists. U.S. intelligence agency officials interviewed by The

    New York Times in March 2012 said they continued to assess that Iran had

    not restarted its weaponization program, which the 2007 National

    Intelligence Estimate said Iran had discontinued in 2003, although they have

    found evidence that some weaponization-related activities have continued.

    The Israeli Mossad reportedly shared this belief.

    History

    1950s and 1960s

    The foundations forIran's nuclear program were laid on 5 March 1957, when

    a "proposed agreement for cooperation in research in the peaceful uses of

    atomic energy" was announced under the auspices of Eisenhower's Atoms

    for Peace program.

    In 1967, the Tehran Nuclear Research Center(TNRC) was established, run

    by the Atomic Energy Organization of Iran (AEOI). The TNRC was

    equipped with a U.S.-supplied, 5-megawatt nuclear research reactor, which

    was fueled by highly enriched uranium.

    Iran signed theNuclear Non-Proliferation Treaty (NPT) in 1968 and ratified

    it in 1970, making Iran's nuclear program subject to IAEA verification.

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    1970s

    The Shah approved plans to construct, with U.S. help, up to 23 nuclear

    power stations by 2000. In March 1974, the Shah envisioned a time when the

    world's oil supply would run out, and declared, "Petroleum is a noble

    material, much too valuable to burn ... We envision producing, as soon as

    possible, 23,000 megawatts of electricity using nuclear plants."

    Iran had deep pockets and close ties to the West. U.S. and European

    companies scrambled to do business in Iran. Bushehr would be the first

    plant, and would supply energy to the inland city of Shiraz. In 1975, the

    Erlangen/Frankfurt firm Kraftwerk Union AG, a joint venture of Siemens

    AG and AEG, signed a contract worth $4 to $6 billion to build the

    pressurized water reactornuclear power plant. Construction of the two 1,196

    MWe, and was to have been completed in 1981.

    The joint stock company Eurodif operating a uranium enrichment plant in

    France was formed in 1973 by France, Belgium, Spain and Sweden. In 1975

    Sweden's 10% share in Eurodif went to Iran as a result of an arrangement

    between France and Iran. The French government subsidiary company

    Cogma and the Iranian Government established the Sofidif (Socit franco

    iranienne pour l'enrichissement de l'uranium par diffusion gazeuse)

    enterprise with 60% and 40% shares, respectively. In turn, Sofidif acquired a

    25% share in Eurodif, which gave Iran its 10% share of Eurodif. MohammedReza Shah Pahlavi lent 1 billion dollars (and another 180 million dollars in

    1977) for the construction of the Eurodif factory, to have the right of buying

    10% of the production of the site.

    "President Gerald Ford signed a directive in 1976 offering Tehran the chance

    to buy and operate a U.S.-built reprocessing facility for extractingplutonium

    from nuclear reactor fuel. The deal was for a complete 'nuclear fuel cycle'."At the time, Richard Cheney was the White House Chief of Staff, and

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    Donald Rumsfeld was the Secretary of Defense. The Ford strategy paper said

    the "introduction of nuclear power will both provide for the growing needs

    of Iran's economy and free remaining oil reserves for export or conversion to

    petrochemicals."

    ThenUnited States Secretary of StateHenry Kissingerrecalled in 2005, "I

    don't think the issue of proliferation came up." However, a 1974 CIA

    proliferation assessment stated "If [the Shah] is alive in the mid-1980s ... and

    if other countries [particularly India] have proceeded with weapons

    development we have no doubt Iran will follow suit."

    The Shah also signed a nuclear cooperation agreement with South Africa

    under which Iranian oil money financed the development of South African

    fuel enrichment technology using a novel "jet nozzle" process, in return for

    assured supplies of South African (and Namibian) enriched uranium.

    Post-revolution, 19791989

    Following the 1979 Revolution, most of the international nuclear

    cooperation with Iran was cut off. Iran has later argued that these

    experiences indicate foreign facilities and foreign fuel supplies are an

    unreliable source of nuclear fuel supply.

    At the time of the revolution, Iran was a joint owner in the French Eurodif

    international enrichment facility, but the facility stopped supplying enriched

    uranium to Iran shortly afterwards. Kraftwerk Union stopped working at the

    Bushehr nuclear project in January 1979, with one reactor 50% complete,and the other reactor 85% complete, and they fully withdrew from the

    project in July 1979. The company said they based their action on Iran's non-

    payment of $450 million in overdue payments, while other sources claim the

    construction was halted under pressure from the United States.

    The United States cut off the supply of highly enriched uranium (HEU) fuel

    for the Tehran Nuclear Research Center, which forced the reactor to shutdown for a number of years, until Argentina's National Atomic Energy

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    Commission in 198788 signed an agreement with Iran to help in converting

    the reactor from highly enriched uranium fuel to 19.75% low-enriched

    uranium, and to supply the low-enriched uranium to Iran. The uranium was

    delivered in 1993.

    In 1981, Iranian governmental officials concluded that the country's nuclear

    development should continue. Reports to the IAEA included that a site at

    Esfahan Nuclear Technology Center (ENTEC) would act "as the center for

    the transfer and development of nuclear technology, as well as contribute to

    the formation of local expertise and manpower needed to sustain a very

    ambitious program in the field of nuclear power reactor technology and fuel

    cycle technology." The IAEA also was informed about Entec's largest

    department, for materials testing, which was responsible for UO2 pellet fuel

    fabrication and a chemical department whose goal was the conversion of

    U3O8 to nuclear grade UO2.

    In 1983, IAEA officials were keen to assist Iran in chemical aspects of

    reactor fuel fabrication, chemical engineering and design aspects of pilotplants for uranium conversion, corrosion of nuclear materials, LWR fuel

    fabrication, and pilot plant development for production of nuclear grade

    UO2. However, the U.S. government "directly intervened" to discourage

    IAEA assistance in Iranian production of UO2 and UF6. A former U.S.

    official said "we stopped that in its tracks." Iran later set up a bilateral

    cooperation on fuel cycle related issues with China, but China also agreed todrop most outstanding nuclear commerce with Iran, including the

    construction of the UF6 plant, due to U.S. pressure.

    In April 1984, West German intelligence reported that Iran might have a

    nuclear bomb within two years with uranium from Pakistan. The Germans

    leaked this news in the first public Western intelligence report of a post-

    revolutionary nuclear weapons program in Iran. Later that year, Minority

    Whip of the United States Senate Alan Cranston asserted that the Islamic

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    Republic of Iran was seven years away from being able to build its own

    nuclear weapon.

    During the Iran-Iraq war, the two Bushehr reactors were damaged by

    multiple Iraqi air strikes and work on the nuclear program came to a

    standstill. Iran notified the International Atomic Energy Agency of the

    blasts, and complained about international inaction and the use of French

    made missiles in the attack.

    19902002

    From the beginning of 1990s, Russia formed a joint research organization

    with Iran called Persepolis which provided Iran with Russian nuclear

    experts, and technical information. Five Russian institutions, including the

    Russian Federal Space Agency helped Tehran to improve its missiles. The

    exchange of technical information with Iran was personally approved by the

    SVR director Trubnikov. President Boris Yeltsin had a "two track policy"

    offering commercial nuclear technology to Iran and discussing the issues

    with Washington.

    In 1990, Iran began to look outwards towards new partners for its nuclear

    program; however, due to a radically different political climate and punitive

    U.S. economic sanctions, few candidates existed.

    In 1991, an agreement was found for the French-Iranian disagreement since

    1979 (see Post Revolution, 19791989): France refunded more than 1.6

    billion dollars. Iran remained shareholder of Eurodif via Sofidif, a Franco-Iranian consortium shareholder to 25% of Eurodif. However, Iran refrained

    from asking for the produced uranium.

    In 1992, following media allegations about undeclared nuclear activities in

    Iran, Iran invited IAEA inspectors to the country and permitted those

    inspectors to visit all the sites and facilities they asked to see. Director

    General Blix reported that all activities observed were consistent with thepeaceful use of atomic energy. The IAEA visits included undeclared

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    facilities and Iran's nascent uranium mining project at Saghand. In the same

    year, Argentine officials disclosed that their country had canceled a sale to

    Iran of civilian nuclear equipment worth $18 million, under US pressure.

    In 1995, Iran signed a contract with Russia's Ministry of Atomic Energy to

    resume work on the partially complete Bushehr plant, installing into the

    existing Bushehr I building a 915 MWe VVER-1000 pressurized water

    reactor, with completion expected in 2009.

    In 1996, the U.S. convinced the People's Republic of China to pull out of a

    contract to construct a uranium conversion plant. However, the Chinese

    provided blueprints for the facility to the Iranians, who advised the IAEA

    that they would continue work on the program, and IAEA Director

    Mohamed ElBaradei even visited the construction site.

    According to a report by the Argentine justice in 2006, during the late 1980s

    and early 1990s the US pressured Argentina to terminate its nuclear

    cooperation with Iran, and from early 1992 to 1994 negotiations between

    Argentina and Iran took place with the aim of re-establishing the threeagreements made in 198788.

    20022006

    On 14 August 2002, Alireza Jafarzadeh, a spokesman for an Iranian

    dissident group National Council of Resistance of Iran, publicly revealed the

    existence of two nuclear sites under construction: a uranium enrichment

    facility inNatanz (part of which is underground), and a heavy waterfacilityin Arak. It has been strongly suggested that intelligence agencies already

    knew about these facilities but the reports had been classified.

    The IAEA immediately sought access to these facilities and further

    information and co-operation from Iran regarding its nuclear program.

    According to arrangements in force at the time for implementation of Iran's

    safeguards agreement with the IAEA, Iran was not required to allow IAEAinspections of a new nuclear facility until six months before nuclear material

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    is introduced into that facility. At the time, Iran was not even required to

    inform the IAEA of the existence of the facility. This "six months" clause

    was standard for implementation of all IAEA safeguards agreements until

    1992, when the IAEA Board of Governors decided that facilities should be

    reported during the planning phase, even before construction began. Iran was

    the last country to accept that decision, and only did so 26 February 2003,

    after the IAEA investigation began.

    In May 2003, shortly after the U.S. invasion of Iraq, elements of the Iranian

    government of Mohammad Khatami made a confidential proposal for a

    "Grand Bargain" through Swiss diplomatic channels. It offered full

    transparency of Iran's nuclear program and withdrawal of support for Hamas

    and Hezbollah, in exchange for security assurances from the United States

    and a normalization of diplomatic relations. The Bush Administration did

    not respond to the proposal, as senior U.S. officials doubted its authenticity.

    The proposal reportedly was widely blessed by the Iranian government,

    including Supreme Leader Ayatollah Khamanei.France, Germany and the United Kingdom (the EU-3) undertook a

    diplomatic initiative with Iran to resolve questions about its nuclear program.

    On 21 October 2003, in Tehran, the Iranian government and EU-3 Foreign

    Ministers issued a statement known as the Tehran Declaration in which Iran

    agreed to co-operate with the IAEA, to sign and implement an Additional

    Protocol as a voluntary, confidence-building measure, and to suspend itsenrichment and reprocessing activities during the course of the negotiations.

    The EU-3 in return explicitly agreed to recognize Iran's nuclear rights and to

    discuss ways Iran could provide "satisfactory assurances" regarding its

    nuclear power program, after which Iran would gain easier access to modern

    technology. Iran signed an Additional Protocol on 18 December 2003, and

    agreed to act as if the protocol were in force, making the required reports to

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    the IAEA and allowing the required access by IAEA inspectors, pending

    Iran's ratification of the Additional Protocol.

    The IAEA reported 10 November 2003, that "it is clear that Iran has failed in

    a number of instances over an extended period of time to meet its obligations

    under its Safeguards Agreement with respect to the reporting of nuclear

    material and its processing and use, as well as the declaration of facilities

    where such material has been processed and stored." Iran was obligated to

    inform the IAEA of its importation of uranium from China and subsequent

    use of that material in uranium conversion and enrichment activities. It was

    also obligated to report to the IAEA experiments with the separation of

    plutonium. However, the Islamic Republic reneged on its promise to permit

    the IAEA to carry out their inspections and suspended the Additional

    Protocol agreement outlined above in October 2005.

    A comprehensive list of Iran's specific "breaches" of its IAEA safeguards

    agreement, which the IAEA described as part of a "pattern of concealment,"

    can be found in the 15 November 2004, report of the IAEA on Iran's nuclearprogram. Iran attributes its failure to report certain acquisitions and activities

    on US obstructionism, which reportedly included pressuring the IAEA to

    cease providing technical assistance to Iran's uranium conversion program in

    1983. On the question of whether Iran had a hidden nuclear weapons

    program, the IAEA's November 2003 report states that it found "no

    evidence" that the previously undeclared activities were related to a nuclearweapons program, but also that it was unable to conclude that Iran's nuclear

    program was exclusively peaceful.

    In June 2004, construction was commenced on IR-40, a 40 MW heavy water

    reactor

    Under the terms of the Paris Agreement, on 14 November 2004, Iran's chief

    nuclear negotiator announced a voluntary and temporary suspension of its

    uranium enrichment program (enrichment is not a violation of the NPT) and

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    the voluntary implementation of the Additional Protocol, after pressure from

    the United Kingdom, France, and Germany acting on behalf of the European

    Union (EU, known in this context as theEU-3). The measure was said at the

    time to be a voluntary, confidence-building measure, to continue for some

    reasonable period of time (six months being mentioned as a reference) as

    negotiations with the EU-3 continued. On 24 November, Iran sought to

    amend the terms of its agreement with the EU to exclude a handful of the

    equipment from this deal for research work. This request was dropped four

    days later. According to Seyyed Hossein Mousavian, one of the Iranian

    representatives to the Paris Agreement negotiations, the Iranians made it

    clear to their European counterparts that Iran would not consider a

    permanent end to uranium enrichment:

    Before the Paris [Agreement] text was signed, Dr Rohani ... stressed that

    they should be committed neither to speak nor even think of a cessation any

    more. The ambassadors delivered his message to their foreign ministers prior

    to the signing of the Paris agreed text ... The Iranians made it clear to theirEuropean counterparts that if the latter sought a complete termination of

    Iran's nuclear fuel-cycle activities, there would be no negotiations. The

    Europeans answered that they were not seeking such a termination, only an

    assurance on the non-diversion of Iran's nuclear programme to military ends.

    In February 2005, Iran pressed the EU-3 to speed up talks, which the EU-3

    refused to do so. The talks made little progress because of the divergentpositions of the two sides. In early August 2005, after the June election of

    Mahmoud Ahmadinejad as Iran's President, Iran removed seals on its

    uranium enrichment equipment in Isfahan, which UK officials termed a

    "breach of the Paris Agreement" though a case can be made that the EU

    violated the terms of the Paris Agreement by demanding that Iran abandon

    nuclear enrichment. Several days later, the EU-3 offered Iran a package in

    return for permanent cessation of enrichment. Reportedly, it included

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    benefits in the political, trade and nuclear fields, as well as long-term

    supplies of nuclear materials and assurances of non-aggression by the EU

    (but not the US). Mohammad Saeedi, the deputy head of Iran's atomic

    energy organization rejected the offer, terming it "very insulting and

    humiliating" and other independent analysts characterized the EU offer as an

    "empty box". Iran's announcement that it would resume enrichment preceded

    the election of Iranian President Ahmadinejad by several months. The delay

    in restarting the program was to allow the IAEA to re-install monitoring

    equipment. The actual resumption of the program coincided with the election

    of President Mahmoud Ahmedinejad, and the appointment ofAli Larijani as

    the chief Iranian nuclear negotiator.

    Around 2005, Germany refused to export any more nuclear equipment or

    refund money paid by Iran for such equipment in the 1980s. (See European

    reactions 197989.)

    In August 2005, with the assistance of Pakistan a group of US government

    experts and international scientists concluded that traces of bomb-gradeuranium found in Iran came from contaminated Pakistani equipment and

    were not evidence of a clandestine nuclear weapons program in Iran. In

    September 2005, IAEA Director General Mohammad ElBaradei reported

    that "most" highly enriched uranium traces found in Iran by agency

    inspectors came from imported centrifuge components, validating Iran's

    claim that the traces were due to contamination. Sources in Vienna and theState Department reportedly stated that, for all practical purposes, the HEU

    issue has been resolved.

    The IAEA Board of Governors deferred a formal decision on Iran's nuclear

    case for two years after 2003, while Iran continued cooperation with the EU-

    3. On 24 September 2005, after Iran abandoned the Paris Agreement, the

    Board found that Iran had been in non-compliance with its safeguards

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    agreement, based largely on facts that had been reported as early as

    November 2003.

    On 4 February 2006, the 35 member Board of Governors of the IAEA voted

    273 (with five abstentions: Algeria, Belarus, Indonesia, Libya and South

    Africa) to report Iran to the UN Security Council. The measure was

    sponsored by the United Kingdom, France and Germany, and it was backed

    by the United States. Two permanent council members, Russia and China,

    agreed to referral only on condition that the council take no action before

    March. The three members who voted against referral were Venezuela, Syria

    and Cuba. In response, on 6 February 2006, Iran suspended its voluntary

    implementation of the Additional Protocol and all other voluntary and non-

    legally binding cooperation with the IAEA beyond what is required by its

    safeguards agreement.

    In late February 2006, IAEA Director Mohammad El-Baradei raised the

    suggestion of a deal, whereby Iran would give up industrial-scale enrichment

    and instead limit its program to a small-scale pilot facility, and agree toimport its nuclear fuel from Russia (see nuclear fuel bank). The Iranians

    indicated that while they would not be willing to give up their right to

    enrichment in principle, they were willing to consider the compromise

    solution. However, in March 2006, the Bush Administration made it clear

    that they would not accept any enrichment at all in Iran.

    The IAEA Board of Governors deferred the formal report to the UN SecurityCouncil of Iran's non-compliance (such a report is required by Article XII.C

    of the IAEA Statute), until 27 February 2006. The Board usually makes

    decisions by consensus, but in a rare non-consensus decision it adopted this

    resolution by vote, with 12 abstentions.

    On 11 April 2006, Iranian President Mahmoud Ahmadinejad announced that

    Iran had successfully enriched uranium. President Ahmadinejad made the

    announcement in a televised address from the northeastern city ofMashhad,

    18

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    where he said "I am officially announcing that Iran joined the group of those

    countries which have nuclear technology." The uranium was enriched to

    3.5% using over a hundred centrifuges.

    On 13 April 2006, after US Secretary of State Condoleezza Rice said (on 12

    April 2006) the Security Council must consider "strong steps" to induce

    Tehran to change course in its nuclear ambition; President Ahmadinejad

    vowed that Iran will not back away from uranium enrichment and that the

    world must treat Iran as a nuclear power, saying "Our answer to those who

    are angry about Iran achieving the full nuclear fuel cycle is just one phrase.

    We say: Be angry at us and die of this anger," because "We won't hold talks

    with anyone about the right of the Iranian nation to enrich uranium."

    On 14 April 2006, The Institute for Science and International Security (ISIS)

    published a series of analyzed satellite images of Iran's nuclear facilities at

    Natanz and Esfahan. Featured in these images is a new tunnel entrance near

    the Uranium Conversion Facility (UCF) at Esfahan and continued

    construction at the Natanz uranium enrichment site. In addition, a series ofimages dating back to 2002 shows the underground enrichment buildings

    and its subsequent covering by soil, concrete, and other materials. Both

    facilities were already subject to IAEA inspections and safeguards.

    Iran responded to the demand to stop enrichment of uranium 24 August

    2006, offering to return to the negotiation table but refusing to end

    enrichment.Qolam Ali Hadad-adel, speaker of Iran's parliament, said on 30 August

    2006, that Iran had the right to "peaceful application of nuclear technology

    and all other officials agree with this decision," according to the semi-

    official Iranian Students News Agency. "Iran opened the door to negotiations

    for Europe and hopes that the answer which was given to the nuclear

    package would bring them to the table."

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    In Resolution 1696 of 31 July 2006, the United Nations Security Council

    demanded that Iran suspend all enrichment and reprocessing related

    activities.

    In UN Security Council Resolution 1737 of 26 December 2006, the Council

    imposed a series of sanctions on Iran for its non-compliance with the earlier

    Security Council resolution deciding that Iran suspend enrichment-related

    activities without delay. These sanctions were primarily targeted against the

    transfer of nuclear and ballistic missile technologies and, in response to

    concerns of China and Russia, were lighter than that sought by the United

    States. This resolution followed a report from the IAEA that Iran had

    permitted inspections under its safeguards agreement but had not suspended

    its enrichment-related activities.

    2007present

    UN Security Council

    The UN Security Council has passed seven resolutions on Iran:

    Resolution 1696 (31 July 2006) demanded that Iran suspend its

    uranium enrichment activities, invoking Chapter VII of the United

    Nations Charterto make that demand legally binding on Iran.

    Resolution 1737 (23 December 2006) imposed sanctions after Iran

    refused to suspend its enrichment activities, cutting off nuclear

    cooperation, demanding that Iran cooperate with the IAEA, and

    freezing the assets of a number of persons and organizations linked to

    Iran's nuclear and missile programs. It established a committee to

    monitor sanctions implementation.

    Resolution 1747 (24 March 2007) expanded the list of sanctioned

    Iranian entities and welcomed the proposal by the permanent five

    members of the Security Council plus Germany for resolving issues

    regarding Iran's nuclear program.

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    In resolution 1803 (3 March 2008), the Council decided to extend

    those sanctions to additional persons and entities, impose travel

    restrictions on sanctioned persons, and bar exports of nuclear- and

    missile-related dual-use goods to Iran.

    Resolution 1835 (27 September 2008) reaffirmed the preceding four

    resolutions, the only one of the seven not to invoke Chapter VII.

    Resolution 1929 (9 June 2010) imposed a complete arms embargo on

    Iran, banned Iran from any activities related to ballistic missiles,

    authorized the inspection and seizure of shipments violating these

    restrictions, and extended the asset freeze to the Iranian Revolutionary

    Guard Corps (IRGC) and the Islamic Republic of Iran Shipping Lines

    (IRISL). The resolution passed by a vote of 122, with Turkey and

    Brazil voting against and Lebanon abstaining. A number of countries

    imposed measures to implement and extend these sanctions, including

    the United States, the European Union, Australia, Canada, Japan,

    Norway, South Korea, and Russia. Resolution 1984 (8 June 2011) extended for a further 12 months the

    mandate of the Panel of Experts established by Resolution 1929.

    21

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    Chapter 3

    INTERNATIONAL ATOMIC ENERGY AGENCY

    The IAEA remains unable to draw a conclusion on whether Iran has a secret

    nuclear weapons program. It normally draws conclusions about the absence

    of undeclared nuclear activities only in countries that have an Additional

    Protocol in force. Iran ceased its voluntary and non-legally binding

    implementation of the Additional Protocol and all other voluntary

    cooperation with the IAEA beyond that required under its safeguards

    agreement after the IAEA Board of Governors decided to report its

    safeguards non-compliance to the UN Security Council in February 2006.

    The UN Security Council then passed Resolution 1737, invoking

    Chapter VII of the UN Charter, obligating Iran to implement the Additional

    Protocol. Iran has maintained that the Security Council's engagement in "the

    issue of the peaceful nuclear activities of the Islamic Republic of Iran" are

    unlawful and malicious. In its Safeguards Statement for 2007, the IAEA

    found no indication of undeclared nuclear material or activities in 47 of 82

    states that had both NPT safeguards agreements and Additional Protocols in

    force, while it was unable to draw similar conclusions in 25 other states. In

    August 2007, Iran and the IAEA entered into an agreement on the modalities

    for resolving remaining outstanding issues, and made progress in outstanding

    issues except for the question of "alleged studies" of weaponization by Iran.

    Iran says it did not address the alleged studies in the IAEA work plan

    because they were not included in the plan. The IAEA has not detected the

    actual use of nuclear material in connection with the alleged studies and says

    it regrets it is unable to provide Iran with copies of the documentation

    concerning the alleged studies, but says the documentation is comprehensive

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    and detailed so that it needs to be taken seriously. Iran says the allegations

    are based on "forged" documents and "fabricated" data, and that it has not

    received copies of the documentation to enable it to prove that they were

    forged and fabricated.

    Since 2011, the IAEA has voiced growing concern over possible military

    dimensions to Iran's nuclear program, and has released a number of reports

    chastising Iran's nuclear program to that effect.

    February 2007 Report

    In February 2007, anonymous diplomats at the atomic energy agency

    reportedly complained that most U.S. intelligence shared with the IAEA had

    proved inaccurate, and none had led to significant discoveries inside Iran.

    On 10 May 2007, Iran and the IAEA vehemently denied reports that Iran had

    blocked IAEA inspectors when they sought access to the Iran's enrichment

    facility. On 11 March 2007, Reuters quoted International Atomic Energy

    Agency spokesman Marc Vidricaire, "We have not been denied access at

    any time, including in the past few weeks. Normally we do not comment on

    such reports but this time we felt we had to clarify the matter ... If we had a

    problem like that we would have to report to the [35-nation IAEA

    governing] board ... That has not happened because this alleged event did not

    take place."

    May 2007 Report

    On 30 July 2007, inspectors from the IAEA spent five hours at the Arak

    complex, the first such visit since April. Visits to other plants in Iran were

    expected during the following days. It has been suggested that access may

    have been granted in an attempt to head off further sanctions.

    August 2007 Report and Agreement between Iran and the IAEA

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    An IAEA report to the Board of Governors on 30 August 2007, stated that

    Iran's Fuel Enrichment Plant at Natanz is operating "well below the expected

    quantity for a facility of this design," and that 12 of the intended 18

    centrifuge cascades at the plant were operating. The report stated that the

    IAEA had "been able to verify the non-diversion of the declared nuclear

    materials at the enrichment facilities in Iran," and that longstanding issues

    regarding plutonium experiments and HEU contamination on spent fuel

    containers were considered "resolved." However, the report added that the

    Agency remained unable to verify certain aspects relevant to the scope and

    nature of Iran's nuclear program.

    The report also outlined a work plan agreed by Iran and the IAEA on 21

    August 2007. The work plan reflected agreement on "modalities for

    resolving the remaining safeguards implementation issues, including the

    long outstanding issues." According to the plan, these modalities covered all

    remaining issues regarding Iran's past nuclear program and activities. The

    IAEA report described the work plan as "a significant step forward," butadded "the Agency considers it essential that Iran adheres to the time line

    defined therein and implements all the necessary safeguards and

    transparency measures, including the measures provided for in the

    Additional Protocol." Although the work plan did not include a commitment

    by Iran to implement the Additional Protocol, IAEA safeguards head Olli

    Heinonen observed that measures in the work plan "for resolving ouroutstanding issues go beyond the requirements of the Additional Protocol."

    According to Reuters, the report was likely to blunt Washington's push for

    more severe sanctions against Iran. One senior UN official familiar said U.S.

    efforts to escalate sanctions against Iran would provoke a nationalistic

    backlash by Iran that would set back the IAEA investigation in Iran. In late

    October 2007, chief IAEA inspector Olli Heinonen described Iranian

    cooperation with the IAEA as "good," although much remained to be done.

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    In late October 2007, according to the International Herald Tribune, the head

    of the IAEA, Mohamed ElBaradei, stated that he had seen "no evidence" of

    Iran developing nuclear weapons. The IHT quoted ElBaradei as saying "We

    have information that there has been maybe some studies about possible

    weaponization. That's why we have said that we cannot give Iran a pass right

    now, because there is still a lot of question marks ... . But have we seen Iran

    having the nuclear material that can readily be used into a weapon? No.

    Have we seen an active weaponization program? No." The IHT report went

    on to say that "ElBaradei said he was worried about the growing rhetoric

    from the U.S., which he noted focused on Iran's alleged intentions to build a

    nuclear weapon rather than evidence the country was actively doing so. If

    there is actual evidence, ElBaradei said he would welcome seeing it."

    November 2007 report

    The 15 November 2007, IAEA report found that on nine outstanding issues

    listed in the August 2007 workplan, including experiments on the P-2

    centrifuge and work with uranium metals, "Iran's statements are consistent

    with ... information available to the agency," but it warned that its

    knowledge of Tehran's present atomic work was shrinking due to Iran's

    refusal to continue voluntarily implementing the Additional Protocol, as it

    had done in the past under the October 2003 Tehran agreement and the

    November 2004 Paris agreement. The only remaining issues were traces ofHEU found at one location, and allegations by US intelligence agencies

    based on a laptop computer allegedly stolen from Iran which reportedly

    contained nuclear weapons-related designs. The IAEA report also stated that

    Tehran continues to produce LEU. Iran has declared it has a right to peaceful

    nuclear technology under the NPT, despite Security Council demands that it

    cease its nuclear enrichment.

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    On 18 November 2007, President Ahmadinejad announced that he intended

    to consult with other Arab nations on a plan, under the auspices of the Gulf

    Cooperation Council, to enrich uranium in a neutral third country, such as

    Switzerland.

    Israel criticised IAEA reports on Iran as well as the former IAEA-director

    ElBaradei. Israel's Minister of Strategic Affairs Avigdor Lieberman

    dismissed reports by the UN nuclear watchdog agency as being

    "unacceptable" and accused IAEA head ElBaradei of being "pro-Iranian".

    February 2008 report

    On 11 February 2008, news reports stated that the IAEA report on Iran's

    compliance with the August 2007 work plan would be delayed over internal

    disagreements over the report's expected conclusions that the major issues

    had been resolved. French Foreign Minister Bernard Kouchner stated that he

    would meet with IAEA Director Mohammed ElBaradei to convince him to

    "listen to the West" and remind him that the IAEA is merely in charge of the

    "technical side" rather than the "political side" of the issue. A senior IAEA

    official denied the reports of internal disagreements and accused Western

    powers of using the same "hype" tactics employed against Iraq before the

    2003 U.S.-led invasion to justify imposing further sanctions on Iran over its

    nuclear program.

    The IAEA issued its report on the implementation of safeguards in Iran on

    22 February 2008. With respect to the report, IAEA Director Mohammad

    ElBaradei stated that "We have managed to clarify all the remaining

    outstanding issues, including the most important issue, which is the scope

    and nature of Irans enrichment programme" with the exception of a single

    issue, "and that is the alleged weaponization studies that supposedly Iran hasconducted in the past."

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    According to the report, the IAEA shared intelligence with Iran recently

    provided by the US regarding "alleged studies" on a nuclear weaponization

    program. The information was allegedly obtained from a laptop computer

    smuggled out of Iran and provided to the US in mid-2004. The laptop was

    reportedly received from a "longtime contact" in Iran who obtained it from

    someone else now believed to be dead. A senior European diplomat warned

    "I can fabricate that data," and argued that the documents look "beautiful, but

    is open to doubt". The United States has relied on the laptop to prove that

    Iran intends to develop nuclear weapons. In November 2007, the United

    States National Intelligence Estimate (NIE) believed that Iran halted an

    alleged active nuclear weapons program in fall 2003. Iran has dismissed the

    laptop information as a fabrication, and other diplomats have dismissed the

    information as relatively insignificant and coming too late.

    The February 2008 IAEA report states that the Agency has "not detected the

    use of nuclear material in connection with the alleged studies, nor does it

    have credible information in this regard."

    May 2008 report

    On 26 May 2008, the IAEA issued another regular report on the

    implementation of safeguards in Iran.

    According to the report, the IAEA has been able to continue to verify the

    non-diversion of declared nuclear material in Iran, and Iran has provided theAgency with access to declared nuclear material and accountancy reports, as

    required by its safeguards agreement.

    Iran had installed several new centrifuges, including more advanced models,

    and environmental samples showed the centrifuges "continued to operate as

    declared", making low-enriched uranium. The report also noted that other

    elements of Iran's nuclear program continued to be subject to IAEA

    monitoring and safeguards as well, including the construction of the heavy

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    water facility in Arak, the construction and use of hot cells associated with

    the Tehran Research Reactor, the uranium conversion efforts, and the

    Russian nuclear fuel delivered for the Bushehr reactor.

    The report stated that the IAEA had requested, as a voluntary "transparency

    measure", to be allowed access to centrifuge manufacturing sites, but that

    Iran had refused the request. The IAEA report stated that Iran had also

    submitted replies to questions regarding "possible military dimensions" to its

    nuclear program, which include "alleged studies" on a so-called Green Salt

    Project, high-explosive testing and missile re-entry vehicles. According to

    the report, Iran's answers were still under review by the IAEA at the time the

    report was published. However, as part of its earlier "overall assessment" of

    the allegations, Iran had responded that the documents making the

    allegations were forged, not authentic, or referred to conventional

    applications.

    The report stated that Iran may have more information on the alleged studies,

    which "remain a matter of serious concern", but that the IAEA itself had notdetected evidence of actual design or manufacture by Iran of nuclear

    weapons or components. The IAEA also stated that it was not itself in

    possession of certain documents containing the allegations against Iran, and

    so was not able to share the documents with Iran.

    September 2008 reportAccording to the 15 September 2008, IAEA report on the implementation of

    safeguards in Iran, Iran continued to provide the IAEA with access to

    declared nuclear material and activities, which continued to be operated

    under safeguards and with no evidence of any diversion of nuclear material

    for non-peaceful uses. Nevertheless, the report reiterated that the IAEA

    would not be able to verify the exclusively peaceful nature of Iran's nuclear

    program unless Iran adopted "transparency measures" which exceeded its

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    safeguards agreement with the IAEA, since the IAEA does not verify the

    absence of undeclared nuclear activities in any country unless the Additional

    Protocol is in force.

    With respect to the report, IAEA Director Mohammad ElBaradei stated that

    "We have managed to clarify all the remaining outstanding issues, including

    the most important issue, which is the scope and nature of Iran's enrichment

    programme" with the exception of a single issue, "and that is the alleged

    weaponization studies that supposedly Iran has conducted in the past."

    According to the report, Iran had increased the number of operating

    centrifuges at its Fuel Enrichment Plant in Isfahan, and continued to enrich

    uranium. Contrary to some media reports which claimed that Iran had

    diverted uranium hexafluoride (UF6) for a renewed nuclear weapons

    program, the IAEA emphasized that all of the uranium hexafluoride was

    under IAEA safeguards. This was re-iterated by IAEA spokesman Melissa

    Fleming, who characterized the report of missing nuclear material in Iran as

    being "fictitious". Iran was also asked to clarify information about foreignassistance it may have received in connection with a high explosive charge

    suitable for an implosion type nuclear device. Iran stated that there had been

    no such activities in Iran.

    The IAEA also reported that it had held a series of meetings with Iranian

    officials to resolve the outstanding issues including the "alleged studies" into

    nuclear weaponization which were listed in the May 2008 IAEA report.During the course of these meetings, the Iranians filed a series of written

    responses including a 117-page presentation which confirmed the partial

    veracity of some of the allegations, but which asserted that the allegations as

    a whole were based on "forged" documents and "fabricated" data, and that

    Iran had not actually received the documentation substantiating the

    allegations. According to the August 2007 "Modalities Agreement" between

    Iran and the IAEA, Iran had agreed to review and assess the "alleged

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    studies" claims, as good faith gesture, "upon receiving all related

    documents".

    Iran's ambassador to the IAEA, Ali Asghar Soltaniyeh, accused the United

    States of preventing the IAEA from delivering the documents about the

    alleged studies to Iran as required by the Modalities Agreement, and stated

    that Iran had done its best to respond to the allegations but would not accept

    "any request beyond our legal obligation and particularly beyond the Work

    Plan, which we have already implemented."

    While once again expressing "regret" that the IAEA was not able to provide

    Iran with copies of the documentation concerning the alleged studies, the

    report also urged Iran to provide the IAEA with "substantive information to

    support its statements and provide access to relevant documentation and

    individuals" regarding the alleged studies, as a "matter of transparency". The

    IAEA submitted a number of proposals to Iran to help resolve the allegations

    and expressed a willingness to discuss modalities that could enable Iran to

    demonstrate credibly that the activities referred to in the documentation werenot nuclear-related, as Iran asserted, while protecting sensitive information

    related to its conventional military activities. The report does not indicate

    whether Iran accepted or rejected these proposals.

    The report also reiterated that IAEA inspectors had found "no evidence on

    the actual design or manufacture by Iran of nuclear material components of a

    nuclear weapon or of certain other key components, such as initiators, or onrelated nuclear physics studies ... Nor has the Agency detected the actual use

    of nuclear material in connection with the alleged studies" but insisted that

    the IAEA would not be able to formally verify the peaceful nature of Iran's

    nuclear program unless Iran had agreed to adopt the requested "transparency

    measures".

    February 2010 Report

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    In February 2010, the IAEA issued a report scolding Iran for failing to

    explain purchases of sensitive technology as well as secret tests of high-

    precision detonators and modified designs of missile cones to accommodate

    larger payloads. Such experiments are closely associated with atomic

    warheads.

    May 2010 Report

    In May 2010, the IAEA issued a report that Iran had declared production of

    over 2.5 metric tons of low-enriched uranium, which would be enough if

    further enriched to make two nuclear weapons, and that Iran has refused to

    answer inspectors questions on a variety of activities, including what the

    agency called the possible military dimensions of Iran's nuclear program.

    In July 2010, Iran barred two IAEA inspectors from entering the country.

    The IAEA rejected Iran's reasons for the ban and said it fully supported the

    inspectors, which Tehran has accused of reporting wrongly that some

    nuclear equipment was missing.

    In August 2010, the IAEA said Iran has started using a second set of 164

    centrifuges linked in a cascade, or string of machines, to enrich uranium to

    up to 20% at its Natanz pilot fuel enrichment plan.

    November 2011 Report

    In November 2011 the IAEA released a report stating inspectors had found

    credible evidence that Iran had been conducting experiments aimed at

    designing a nuclear bomb until 2003, and research may have continued on a

    lower rate since that time. IAEA Director Yukiya Amano said evidence

    gathered by the agency "indicates that Iran has carried out activities relevant

    to the development of a nuclear explosive device." Iran rejected IAEA's

    findings as "unbalanced, unprofessional and prepared with politicalmotivation and under political pressure by mostly the United States." A

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    number of Western analysts have pointed out that the IAEA report had been

    widely misread by the media.

    In November 2011, IAEA officials identified a "large explosive containment

    vessel" inside Parchin. The IAEA later assessed that Iran has been

    conducting experiments to develop nuclear weapons capability.

    The IAEA Board of Governors passed a resolution by a vote of 322 that

    expressed "deep and increasing concern" over the possible military

    dimensions to Iran's nuclear program and calling it "essential" that Iran

    provide additional information and access to the IAEA. The United States

    welcomed the resolution and said it would step up sanctions to press Iran to

    change course. In response to the IAEA resolution, Iran threatened to reduce

    its cooperation with the IAEA, though Iranian Foreign MinisterAli Akbar

    Salehi played down talk of withdrawal from the NPT or the IAEA.

    February 2012 report

    On 24 February 2012, IAEA Director General Amano reported to the IAEA

    Board of Governors that high-level IAEA delegations had met twice with

    Iranian officials to intensify efforts to resolve outstanding issues, but that

    major differences remained and Iran did not grant IAEA requests for access

    to the Parchin site, where the IAEA believes high-explosives research

    pertinent to nuclear weapons may have taken place. Iran dismissed the

    IAEA's report on the possible military dimensions to its nuclear program asbased on "unfounded allegations." Amano called on Iran to agree to a

    structure approach, based on IAEA verification practices, to resolve

    outstanding issues. In March 2012, Iran said it would allow another

    inspection at Parchin "when an agreement is made on a modality plan." Not

    long after, it was reported that Iran might not consent to unfettered access.

    An ISIS study of satellite imagery claimed to have identified an explosive

    site at Parchin.

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    The February IAEA report also described progress in Iran's enrichment and

    fuel fabrication efforts, including a tripling of the number of cascades

    enriching uranium to nearly 20% and testing of fuel elements for the Tehran

    Research Reactor and the still incomplete IR-40 heavy water research

    reactor. Though Iran was continuing to install thousands of additional

    centrifuges, these were based on an erratic and outdated design, both in its

    main enrichment plant at Natanz and in a smaller facility at Fordow buried

    deep underground. "It appears that they are still struggling with the advanced

    centrifuges," said Olli Heinonen, a former chief nuclear inspector for the

    Vienna-based U.N. agency, while nuclear expert Mark Fitzpatrick pointed

    out that Iran had been working on "second-generation models for over ten

    years now and still can't put them into large-scale operation". Peter Crail and

    Daryl G. Kimball of the Arms Control Organisation commented that the

    report "does not identify any breakthroughs" and "confirms initial

    impressions that Iran's announcements last week on a series of 'nuclear

    advances' were hyped."

    Chapter 4

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    IRAN WORK ON NUCLEAR PROGRAM

    Interviews and surveys show that the majority of Iranians in all groups favor

    their country's nuclear program. Polls in 2008 showed that the vast majority

    of Iranians want their country to develop nuclear energy, and 90% of

    Iranians believe it is important (including 81% very important) for Iran "to

    have a full fuel cycle nuclear program." Though Iranians are not Arab, Arab

    publics in six countries also believe that Iran has the right to its nuclear

    program and should not be pressured to stop that program. A poll in

    September 2010 by the International Peace Institute found that 71 percent of

    Iranians favored the development of nuclear weapons, a drastic hike over the

    previous polls by the same agency. However, in July 2012, a poll on an

    Iranian state-run media outlet found that 2/3 Iranians support suspending

    uranium enrichment in return for a gradual easing of sanctions. Meir

    Javedanfar, an Iranian-born commentator with the Middle East Economic

    and Political Analysis Company, stated that while Iranians may want nuclear

    energy, they don't want it at the price the government is willing to pay.

    In explaining why it had left its enrichment program undeclared to the

    IAEA, Iran said that for the past twenty-four years it has "been subject to the

    most severe series of sanctions and export restrictions on material and

    technology for peaceful nuclear technology," so that some elements of its

    program had to be done discreetly. Iran said the U.S. intention "is nothing

    but to make this deprivation" of Iran's inalienable right to enrichment

    technology "final and eternal," and that the United States is completely silent

    on Israel's nuclear enrichment and weapons program. Iran began its nuclear

    research as early as 1975, when France cooperated with Iran to set up the

    Esfahan Nuclear Technology Center (ENTC) to provide training for

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    personnel to develop certain nuclear fuel cycle capabilities. Iran did not hide

    other elements of its nuclear program. For example, its efforts at mining and

    converting uranium were announced on national radio, and Iran also says

    that in consultation with the Agency and member states throughout the

    1990s it underlined its plans to acquire, for exclusively peaceful purposes,

    fuel enrichment technology. Iran's contracts with other nations to obtain

    nuclear reactors were also known to the IAEA but support for the contracts

    was withdrawn after "a U.S. special national intelligence estimate declared

    that while 'Iran's much publicized nuclear power intentions are entirely in the

    planning stage,' the ambitions of the shah could lead Iran to pursue nuclear

    weapons, especially in the shadow of India's successful nuclear test in May

    1974". In 2003, the IAEA reported that Iran had failed to meet its obligations

    to report some of its enrichment activities, which Iran says began in 1985, to

    the IAEA as required by its safeguards agreement. The IAEA further

    reported that Iran had undertaken to submit the required information for

    agency verification and "to implement a policy of co-operation and fulltransparency" as corrective actions.

    The Iranian government has repeatedly made compromise offers to place

    strict limits on its nuclear program beyond what the Non-Proliferation Treaty

    and the Additional Protocol legally require of Iran, in order to ensure that the

    program cannot be secretly diverted to the manufacture of weapons. These

    offers include operating Iran's nuclear program as an internationalconsortium, with the full participation of foreign governments. This offer by

    the Iranians matched a proposed solution put forth by an IAEA expert

    committee that was investigating the risk that civilian nuclear technologies

    could be used to make bombs. Iran has also offered to renounce plutonium

    extraction technology, thus ensuring that its heavy water reactor at Arak

    cannot be used to make bombs either. More recently, the Iranians have

    reportedly also offered to operate uranium centrifuges that automatically

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    self-destruct if they are used to enrich uranium beyond what is required for

    civilian purposes. However, despite offers of nuclear cooperation by the five

    permanent members of the UN Security Council and Germany, Iran has

    refused to suspend its enrichment program as the Council has demanded.

    Iran's representative asserted that dealing with the issue in the Security

    Council was unwarranted and void of any legal basis or practical utility

    because its peaceful nuclear program posed no threat to international peace

    and security, and, that it ran counter to the views of the majority of United

    Nations Member States, which the Council was obliged to represent.

    "They should know that the Iranian nation will not yield to pressure and will

    not let its rights be trampled on," Iranian President Mahmoud Ahmadinejad

    told a crowd 31 August 2006, in a televised speech in the northwestern

    Iranian city ofOrumiyeh. In front of his strongest supporters in one of his

    provincial power bases, the Iranian leader attacked what he called

    "intimidation" by the United Nations, which he said was led by the United

    States. Ahmadinejad criticised a White House rebuff of his offer for atelevised debate with President Bush. "They say they support dialog and the

    free flow of information," he said. "But when debate was proposed, they

    avoided and opposed it." Ahmadinejad said that sanctions "cannot dissuade

    Iranians from their decision to make progress," according to Iran's state-run

    IRNA news agency. "On the contrary, many of our successes, including

    access to the nuclear fuel cycle and producing of heavy water, have beenachieved under sanctions."

    Iran insists enrichment activities are intended for peaceful purposes, but

    much of the West, including the United States, allege that Iran is pursuing

    nuclear weapons, or a nuclear weapons "capability". The 31 August 2006,

    deadline called for Iran to comply with UN Security Council Resolution

    1696 and suspend its enrichment-related activities or face the possibility of

    economic sanctions. The United States believes the council will agree to

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    implement sanctions when high-level ministers reconvene in mid-September,

    U.S. Undersecretary of StateNicholas Burns said. "We're sure going to work

    toward that [sanctions] with a great deal of energy and determination

    because this cannot go unanswered," Burns said. "The Iranians are obviously

    proceeding with their nuclear research; they are doing things that the

    International Atomic Energy Agency does not want them to do, the Security

    Council doesn't want them to do. There has to be an international answer,

    and we believe there will be one."

    Iran asserts that there is no legal basis for Iran's referral to the United

    Nations Security Council since the IAEA has not proven that previously

    undeclared activities had a relationship to a weapons program, and that all

    nuclear material in Iran (including material that may not have been declared)

    had been accounted for and had not been diverted to military purposes.

    Article XII.C of the IAEA Statute requires a report to the UN Security

    Council for any safeguards noncompliance. The IAEA Board of Governors,

    in a rare non-consensus decision with 12 abstentions, decided that "Iran'smany failures and breaches of its obligations to comply with its NPT

    Safeguards Agreement" as reported by the IAEA in November 2003

    constituted "non-compliance" under the terms of Article XII.C of IAEA

    Statute.

    Iran also minimizes the significance of the IAEA's inability to verify the

    exclusively peaceful nature of Iran's nuclear program, arguing the IAEA hasonly drawn such conclusions in a subset of states that have ratified and

    implemented the Additional Protocol. The IAEA has been able to verify the

    non-diversion of declared nuclear material in Iran, but not the absence of

    undeclared activities. According to the IAEA's Safeguards Statement for

    2007, of the 82 states where both NPT safeguards and an Additional

    Protocol are implemented, the IAEA had found no indication of undeclared

    nuclear activity in 47 states, while evaluations of possible undeclared nuclear

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    activity remained ongoing in 35 states. Iran ceased implementation of the

    Additional Protocol and all other cooperation with the IAEA beyond that

    required under its safeguards agreement after the IAEA Board of Governors

    decided to report its safeguards non-compliance to the UN Security Council

    in February 2006. Iran insisted that such cooperation had been "voluntary,"

    but on 26 December 2006, the UN Security Council passed Resolution 1737,

    invoking Chapter VII of the UN Charter, which among other things required

    Iran to cooperate fully with the IAEA, "beyond the formal requirements of

    the Safeguards Agreement and Additional Protocol." The IAEA reported on

    19 November 2008, that, while it is "able to continue to verify the non-

    diversion of declared nuclear material in Iran," it "has not been able to make

    substantive progress" on "key remaining issues of serious concern" because

    of a "lack of cooperation by Iran." Iran has maintained that the Security

    Council's engagement in "the issue of the peaceful nuclear activities of the

    Islamic Republic of Iran" are unlawful and malicio