Iran and U.S. send positive signals on nuclear talks

(Reuters) – Iran and the United States sent positive signals on Wednesday about the possibility of fresh talks on the Iranian nuclear program, which Washington suspects aims to develop atomic weapons.

Iran has given an assurance that it would stop enriching uranium to 20 percent purity if world powers agreed to a proposed nuclear fuel swap, Turkish Foreign Minister Ahmet Davutoglu told reporters in Istanbul.

The offer, conveyed to Davutoglu on Sunday, could bode well for an expected resumption of talks in September between Iran and major powers on the Islamic Republic’s atomic program, which Tehran says is for peaceful purposes and not for bombs.

Asked about Davutoglu’s comments, the U.S. State Department said Iran had often sent mixed signals but that the United States was “fully prepared” to resume talks among the six major powers and Tehran about Iran’s nuclear program.

Iran last met the United States, Britain, China, France, Germany and Russia in Geneva in October, when they discussed Iran sending some low-enriched uranium abroad in exchange for fuel for a Tehran reactor that makes medical isotopes.

“We hope to have the same kind of meeting coming up in the coming weeks that we had last October,” State Department spokesman P.J. Crowley told reporters. “We are interested in a process — more than one meeting.”

Uranium enrichment is a process that can produce fuel for nuclear reactors or, if carried out to a much higher degree, can yield fissile material for atomic bombs.

IRANIAN LETTER

In February, Iran announced that it had started enriching uranium to 20 percent purity, from about 3.5 percent previously, raising concern that it might be planning to enrich uranium still further and to produce weapons grade material.

Since June, fresh sanctions have been imposed on Iran by the U.N. Security Council, the United States, and, on Monday, by the European Union, increasing the pressure on Tehran.

One of the demands made in repeated U.N. Security Council resolutions is that Iran suspend uranium enrichment entirely.

Turkey and Brazil brokered a deal in May for a nuclear fuel swap in Tehran, hoping that this would draw Iran and major powers back to the negotiating table, but the six powers were lukewarm about the plan. At the time, Iran said it would continue enriching uranium to 20 percent.

Davutoglu, who met his Iranian counterpart Manouchehr Mottaki and Brazilian Foreign Minister Celso Amorim on Sunday, said Iran was ready to lay to rest concern over its enrichment program if the proposed nuclear fuel swap went ahead.

“Another important message given by Mottaki during his visit to Turkey was that if the Tehran deal is signed and Iran is provided with the necessary fuel for its research activities, then they will not continue enriching uranium to 20 percent,” Davutoglu told a joint news conference with visiting German Foreign Minister Guido Westerwelle.

Iran sent a letter to the International Atomic Energy Agency on Monday, saying it was ready to negotiate the details of exchanging 2,646 pounds (1,200 kg) of its 3 percent enriched uranium for 265 pounds (120 kg) of 20 percent enriched uranium.

HAVE YOUR CAKE AND EAT IT TOO

Davutoglu urged that talks on this subject with the so-called Vienna Group, comprising Russia, France, the United States and the IAEA, begin as soon as possible.

“The disagreements should be left aside and negotiations between the Vienna Group and Iran should be started right away,” he said. “As progress is made in those technical negotiations, the two sides will trust each other more.”

Davutoglu said Iran had also confirmed that EU foreign affairs chief Catherine Ashton and Iran’s chief negotiator, Saeed Jalili, could meet in early September, after the Muslim fasting month of Ramadan.

NATO-member Turkey has offered to store any swapped uranium and has gone into diplomatic overdrive in an attempt to ease tensions between Western allies and its neighbor.

A U.S. official said Iran may be trying to “have their cake and eat it too,” by swapping some low enriched uranium for nuclear fuel while continuing to enrich at some level.

“A lot depends on the details,” of what Iran is willing to do, he added, saying the West had responded coolly to Iranian initiatives earlier this year because they seemed designed to stymie U.N. Security Council sanctions that passed in June.

“Now that that process is completed, if Iran wants to engage on these subjects we are more than happy to have that conversation,” the official said.

(Writing by Simon Cameron-Moore and Arshad Mohammed; editing by Patricia Wilson and Mohammad Zargham)

Timeline: Missing Iranian nuclear scientist surfaces

June 2009 – Shahram Amiri, a university researcher working for Iran’s Atomic Energy Organization, goes missing during a pilgrimage to Saudi Arabia. Iran’s Press TV said Amiri was a researcher at Tehran’s Malek Ashtar University.

September 2009 – The IAEA says Iran, three months after Amiri’s disappearance, disclosed the existence of its second uranium enrichment site, near the central holy Shi’ite city of Qom, further heightening tension over the Islamic state’s atomic activities. Construction of the plant began in 2006.

October 2009 – Foreign Minister Manouchehr Mottaki says Iran has found documents that prove U.S. involvement in the disappearance.

December 2009 – Iran accuses Saudi Arabia of handing over the scientist to the United States.

March 2010 – Media reports that Amiri defected as part of a long-planned operation to get him to leave Iran and resettle in the United States.

– An ABC report says Amiri has been extensively debriefed since his defection and says he helped to confirm U.S. intelligence assessments about the Iranian nuclear programme.

June 2010 – Iran’s state television shows a video of what it says is the missing nuclear scientist declaring he was kidnapped and taken to the United States where he was “tortured.”

– “I was kidnapped from Medina in a joint operation by the American intelligence service … and Saudi Arabia,” Amiri says, speaking in Farsi, in footage which showed him sitting behind a computer wearing headphones. Amiri says in the video he is in Arizona and that the footage was taken on April 5.

– Shortly after that footage, a second video appears on the Internet, also purporting to be Amiri, in which he says he is actually studying in the United States.

– Iran summons the Swiss ambassador in Tehran and hands over documents which it says shows the missing scientist has been kidnapped by the United States.

– On June 29, in a third video, a man describing himself as Amiri said he had fled from U.S. “agents” and was in hiding, urging human rights groups to help him to return to Iran.

July 2010 – Iran has sent to U.S. authorities more documents about the disappearance of the scientist, demanding his release, the foreign ministry says on July 3.

– “The documents about Shahram Amiri’s abduction by the CIA have been delivered to the Swiss embassy as the preservers of America’s interests,” according to Iran’s IRNA.

– The scientist has taken refuge in the Iranian interests section of Pakistan’s embassy in Washington, a Pakistan foreign ministry official says.

Bosnia says to hold off on EU application for now

Croatia (Reuters) – Bosnia will hold off applying for European Union membership until it receives more welcoming signals from Brussels, its foreign minister said on Saturday.

All the states that emerged from Yugoslavia’s collapse want to join the EU. Slovenia is already a member, Croatia hopes to join in 2012, Serbia, Montenegro and Macedonia have applied for membership while Bosnia lags behind because of continued ethnic divisions.

The Office of the High Representative (OHR), installed after the 1992-95 war, still has power to dismiss Bosnian officials or overturn laws seen as endangering the country’s fragile peace.

The country, divided into a Bosnian Serb Republic and a Muslim-Croat Federation, is largely dysfunctional and reforms have been stalled by ethnic bickering. But like others in the Balkans, Bosnia has declared EU membership as its ultimate goal.

“This is also our main goal, but it seems the European Commission is very reluctant to accept the application of Bosnia Herzegovina as long as the OHR is present,” Foreign Minister Sven Alkalaj told Reuters at a conference in Dubrovnik. “I consider personally that this is not a good tactic.”

International officials say they will not end Bosnia’s protectorate status until the two ethnic halves agree to a series of conditions, including on how to divide state property.

Alkalaj had previously expressed hope that Bosnia would apply for membership by the end of 2009, but continuing ethnic tensions derailed such hopes.

Another delaying factor, Alkalaj said, was the parliamentary election in October.

The EU has said it wants all Balkan states eventually to join but many diplomats believe it may be a long process, given the slow pace of reforms in the region.

(Reporting by Adam Tanner; editing by Zoran Radosavljevic and Matthew Jones)

Turkey says to cut ties with Israel if no apology

July 5 (Reuters) – Turkey will cut ties with Israel unless it receives an apology over a deadly Israeli raid on a Turkish aid ship bound for Gaza, Foreign Minister Ahmet Davutoglu was quoted as saying on Monday.

“Israel has three paths ahead: It either apologises, or accepts the findings from an international commission investigating the raid, or Turkey will cut off ties,” Davutoglu told Hurriyet newspaper.

Once Israel’s closest Muslim ally, Turkey has said several times it wants Israel to apologise over the May 31 raid, pay compensation, agree to a U.N. inquiry into the incident and lift the blockade of 1.6 million Palestinians living in Gaza Strip.

Turkey has said before it was reviewing ties with the Jewish state. But Davutoglu’s words are the first time Ankara has explicitly threatened to sever ties unless its demands are met.

Israel has opened its own inquiry.

Davutoglu met Israel’s Trade and Industry Minister Benjamin Ben-Eliezer last week in Brussels in talks aimed at mending fences. Turkey said then it had told Israel what it should do to repair ties.

“The messages conveyed to Ben-Eliezer have reached the Israeli government. We will not wait forever for an answer,” Davutoglu told Hurriyet’s Monday edition.

“It will be enough if their own commission rules that the raid was unfair and they apologise in line with the commission’s verdict, but we have to see the verdict first.”

Nine Turkish pro-Palestinian activists were killed when Israeli commandos stormed the Turkish-flagged ship Mavi Marmara on May 31 as part of an operation to stop a relief aid flotilla headed for Israeli-blockaded Gaza.

Turkey withdrew its ambassador to Israel, cancelled joint military operations and barred Israeli military aircraft from Turkish airspace after the incident.

The United States wants Israel and Turkey, whose earlier friendship had benefited U.S. policy in the Middle East, to patch up the dispute. President Barack Obama is due to meet Israel’s Benjamin Netanyahu in Washington on Tuesday.

Israel has maintained its commandos opened fire only after a boarding party was attacked by activists wielding clubs and knives.

Israel says the Gaza blockade is needed to choke off the supply of arms to Hamas Islamists who rule the enclave.

Relations between Israel and Turkey have been on a downward spiral since Prime Minister Tayyip Erdogan spoke out forcefully against an Israeli offensive in Gaza at the end of 2008.

The two countries had forged a friendship in the 1990s largely based on military cooperation and intelligence sharing, though trade also prospered.

Turkey has improved relations with neighbours such as Iran and Syria in recent years and Erdogan became a popular figure among Muslim countries for championing the Palestinian cause. (Editing by Charles Dick)

Romania – Factors to Watch on June 25

June 25 (Reuters) – Here are news stories, press reports and events to watch which may affect Romanian financial markets on Friday.

Energy

ROMANIA TOP COURT DELAYS DECISION ON PAY CUTS

Romania’s top court suspended debate on the government’s drastic cuts in public spending, demanded by the IMF as a condition for resuming loans, and may rule on the austerity measures when it meets again on Friday.

[ID:nLDE65N1Q6]

GERMAN FOREIGN MINISTER IN ROMANIA

German Foreign Minister Guido Westerwelle is on a one-day visit to Romania. He is expected to meet President Traian Basescu and Foreign Minister Teodor Baconschi.

PROTESTS

Trade unions plan a rally with up to 4,000 people in front of the president’s headquarters on Friday, protesting against the government’s IMF-backed austerity plan and asking the president not to approve the laws that are now debated by the constitutional court.

Agerpres

ROMANIA M3 MONEY SUPPLY UP 1.0 PCT M/M IN MAY

For a table, double-click [ID:nLDE65N0JF]

RETAIL

Swiss clothes retailer H&M plans to open its first store in Romanian in the first half of 2011.

Ziarul Financiar, Page 1

FONDUL PROPRIETATEA

The listing of the state-owned investment fund Fondul Proprietatea on the Bucharest bourse could happen in the second half of this year, the fund’s head Ionut Popescu told daily Evenimentul Zilei.

The statement comes after the parliament approved some regulations related to the organization of the fund this week.

Evenimentul Zilei, Page 10

EU DEVELOPMENT COMMISSIONER

EU Development Commissioner Andris Piebalgs is expected to meet Finance Minister Sebastian Vladescu and Economy Minister Adreian Videanu of Friday, during his official visit to Romania.

Agerpres

NOTE- For a diary of forthcoming Romanian events, double

click [RO/DIARY], and a calendar of east European economic indicators, see [CONV/DIARY].

For other related news, double click on: ————————————————————— Romania Market Debt [RO-DBT] Romanian forex [RO-FRX] Romania Market Report [ROL/] Romanian money [RO-M] Emerging Market Debt [EMRG/DBT] Emerging forex [EMRG/FRX] All Emerging Markets news [EMRG] CEE indicators [CONV/DIARY] All East Europe News [EEU] E.Europe equities [.CEE] TOP NEWS — Emerging markets [TOP/EMRG] TOP NEWS — Convergence watch [TOP/EAST] Romanian indicators [RO/ECI] Main page of Reuters poll —————————————————————

EU draft sees private debt as parameter-Italy formin

June 17 (Reuters) – A European Union draft document foresees the inclusion of private debt among parameters for the stability pact, Italian Foreign Minister Franco Frattini told reporters on Thursday. “The reference to private debt was inserted into this morning’s document,” Frattini said. “The biggest resistance was expressed by Germany which has a very large private debt, but no other country so far has voiced such strong concern,” Frattini added.

(Reporting by Francesca Piscioneri, writing by Jo Winterbottom)

Swiss man heading home from Libya on Sunday-minister

June 13 (Reuters) – Max Goeldi, the Swiss businessman stranded in Libya for nearly two years, will leave for home on Sunday, Switzerland’s Foreign Minister Micheline Calmy-Rey said.

“Max Goeldi will leave the country today,” she told reporters in the Libyan capital. “Goeldi will return to Switzerland and this is the start of the normalisation of relations between the two countries.”

She also said Switzerland apologises for the publication of photographs of Hannibal Gaddafi, a son of Libyan leader Muammar Gaddafi, after he we was arrested in Geneva in July 2008. (Reporting by Salah Sarrar; Writing by Christian Lowe)

Libyan, Swiss foreign ministers sign agreement

June 13 (Reuters) – The foreign ministers of Libya and Switzerland signed an agreement on their relations on Sunday, a Reuters reporter at the signing ceremony said.

The agreement was signed by Swiss Foreign Minister Micheline Calmy-Rey and her Libyan counterpart Moussa Koussa, the reporter said. Spanish Foreign Minister Miguel Angel Moratinos was also present. There were no details immediately available on the content of the agreement. (Reporting by Ali Shuaib; Writing by Christian Lowe)

One Pakistani killed, 15 abducted in Kyrgyzstan

ISLAMABAD, June 13 (Reuters) – One Pakistani student has been killed and around 15 reportedly taken hostage in Kyrgyzstan’s riot-stricken city of Osh, Foreign Minister Shah Mehmood Qureshi said on Sunday.

“Our first priority is to ensure safety of our brethren stranded there. We are trying to establish contact with Kyrgyz authorities,” Qureshi told Reuters. (Reporting by Zeeshan Haider; Editing by Chris Allbritton) (For more Reuters coverage of Afghanistan and Pakistan, see: here)

Libya, Swiss to sign deal ending row-Libyan official

June 13 (Reuters) – Libya and Switzerland will soon sign a memorandum of understanding to resolve their long-running diplomatic dispute, a source in the Libyan Foreign Ministry said on Sunday.

Swiss Foreign Minister Micheline Calmy-Rey arrived in the Libyan capital for talks early on Sunday and is expected to make a statement to reporters shortly, the source, who did not want to be identified, told Reuters. (Reporting by Ali Shuaib; Writing by Christian Lowe)

Turkey to normalise Israel ties if Gaza blockade ends

June 2 (Reuters) – Turkey said on Wednesday it was ready to normalise ties with Israel if the Jewish state lifts a blockade on Gaza and said “it was time calm replaces anger” in the wake of Israel’s deadly raid on a Turkish-backed flotilla.

Foreign Minister Ahmet Davutogu, in Ankara after a visit to the United States to discuss the diplomatic crisis, also told a news conference that the future of Turkish-Israeli ties depended on Israel’s attitude. Turkey recalled its ambassador to Israel following Monday’s storming of Gaza bound aid ships. (Writing by Ibon Villelabeitia; Editing by Jon Hemming)

Russia, EU demand flotilla inquiry, Gaza opening

ROSTOV-ON-DON, Russia, June 1 (Reuters) – Russia and the European Union called on Tuesday for an impartial probe into the Israeli operation against an aid flotilla and urged the opening of crossings into Gaza for the flow of aid, goods and people.

The EU and Russia regret the loss of life and “demand a full and impartial inquiry” into the incident, Russian Foreign Minister Sergei Lavrov and EU foreign policy chief Catherine Ashton said in a declaration released during a Russia-EU summit in the southern Russian city of Rostov-on-Don. (Reporting by Conor Humphries, writing by Steve Gutterman, editing by Guy Faulconbridge)

U.N. Security Council meets on Gaza flotilla

(Reuters) – The U.N. Security Council held an emergency meeting on Monday to discuss Israel’s storming of a Gaza-bound aid flotilla, with most members of the 15-nation body calling for a full investigation.

World

Following a 90-minute open meeting, the council went into closed-door consultations. Diplomats said envoys were negotiating the text of a proposed statement by the council.

Israeli marines stormed a Turkish aid ship bound for Gaza on Monday. The incident, in which the Israeli military said at least nine pro-Palestinian activists were killed, sparked widespread condemnation.

Many council members echoed earlier statements by their governments in denouncing or criticizing the Israeli action, and said it was time for Israel’s three-year-old blockade of Hamas-controlled Gaza to be fully lifted.

“This is tantamount to banditry and piracy,” Turkish Foreign Minister Ahmet Davutoglu told the council. “It is murder conducted by a state.” Most of those who died in the incident were Turks, according to one senior Israeli officer.

The United States, Israel’s principal ally on the council, spoke in guarded terms. Deputy U.N. Ambassador Alejandro Wolff said Washington deeply regretted the loss of life and wanted a “credible and transparent investigation” by Israel.

But he criticized the attempt by the flotilla organizers to attempt to run Israel’s blockade of Gaza. “Direct delivery (of aid) by sea is neither appropriate nor responsible and certainly not effective under the circumstances,” he said.

REQUEST OF TURKEY

Israel’s Deputy Ambassador Daniel Carmon told the council the flotilla was “anything but” a humanitarian mission. Its organizers “cynically used the guise of humanitarian aid to send a message of hate and to implement violence,” he said.

The organizers, some of whom he said were linked to terrorist organizations, had forced Israel to launch its operation, which had been intended as “a preventive measure to counter illegal breakage of the blockade,” Carmon said.

The council session was convened at the request of Turkey and Lebanon, both of which are rotating non-permanent members of the council.

The permanent Palestinian observer to the United Nations, Riyad Mansour, told reporters ahead of the meeting that he hoped for swift action by the council.

“We hope at the end the day that the Security Council will have a decisive outcome, a reaction (that will) bring Israel to account … to condemn this action,” he said, adding that Israel must “lift the siege against our people in Gaza.”

Mansour represents the Palestinian Authority, which has no control over the Gaza Strip, as it is de facto governed by the militant group Hamas.

Israel’s blockade of Gaza has been criticized by U.N. officials for causing what they call a humanitarian crisis. But Carmon said, “There is no humanitarian crisis in Gaza.”

(Editing by Eric Beech)

Italy deplores killing of civilians on flotilla

May 31 (Reuters) – Italy on Monday condemned the killing of civilians during Israel’s storming of an aid flotilla bound for the blockaded Gaza Strip as “very grave” and asked for an EU investigation to ascertain the facts.

“I deplore in the strongest terms the killing of civilians. This is certainly a grave act,” said Foreign Minister Franco Frattini.

Referring to the European Commission, he said it was “indispensable that there be an inquest to ascertain the facts, which are still not clear.”

He also said he had asked the Israeli ambassador for clarification and hoped that it would not hurt efforts on the part of Israel and Turkey to cooperate in the search for Middle East peace.

(Editing by Samia Nakhoul)

Any U.S. attempt to kill Awlaki in Yemen unacceptable

(Reuters) – An assassination on Yemeni territory of a radical Muslim cleric wanted dead or alive by U.S. authorities would be unacceptable, the Yemeni prime minister said Sunday.

U.S. President Barack Obama’s National Security Council recently gave the CIA the green light to kill Anwar al-Awlaki, a U.S.-Yemeni citizen whom they accuse of having links to al Qaeda and who is believed to be in hiding in southern Yemen.

“We will absolutely not accept that,” Prime Minister Ali Mohammed Megawar told Reuters in an interview.

“We are a sovereign country.”

According to the latest information, Awlaki was still in the southern Yemeni province of Shabwa, Megawar said.

U.S. authorities say Awlaki was added to the CIA’s hit list after he became “operational” in al Qaeda in the Arabian Peninsula, which claimed responsibility for a failed plot to blow up a U.S.-bound passenger plane on Christmas Day.

The Nigerian man accused in the attempted bombing met Awlaki while visiting Yemen, and the U.S.-born preacher also had contacts with a U.S. Army psychiatrist who shot dead 13 people at a U.S. Army base in November.

Yemen’s foreign minister said earlier this month that Yemen would not hand Awlaki over to Washington, but instead put him on trial if he is arrested.

After the September 11, 2001 attacks, the United States and Yemen joined forces to fight al Qaeda, and Washington has kept a close eye on the impoverished country, which borders the world’s top oil exporter Saudi Arabia.

Awlaki, whose father is a former minister in Yemen, traveled to the country in 2004, where he taught at a university before he was arrested and imprisoned in 2006 for suspected links to al Qaeda and involvement in attacks.

He was released in December 2007 because he said he had repented, but he was later charged again on similar counts and went into hiding.

Megawar said he disagreed with Yemen being described as a refuge for al Qaeda.

“Yemen is not a safe haven for terrorists. Yemen has al Qaeda, we recognize that … but they are spread out in different areas and are scared as a result of the strict crackdown by the government for all their actions,” he said.

“Yes, al Qaeda is present in Yemen, al Qaeda is a risk in Yemen, but there is exaggeration by the media,” he said.

Last week, a fugitive Saudi Arabian man who was detained for several years at the U.S. military prison at Guantanamo until his release in 2006, was named as a senior member of Al Qaeda’s Yemen wing, according to a tape by the group.

Megawar said Othman Ahmed al-Ghamdi’s appointment as a senior operative was another development in the ongoing fight against militants in Yemen but added, “We have nothing to do with who comes and goes.”

(Editing by Myra MacDonald)

INTERVIEW-Any US attempt to kill Awlaki in Yemen unacceptable

* Yemen will not accept U.S. killing of Awlaki on territory

* Yemen “not a safe haven” for al Qaeda, threat exaggerated

By Raissa Kasolowsky

SANAA, May 30 (Reuters) – An assassination on Yemeni territory of a radical Muslim cleric wanted dead or alive by U.S. authorities would be unacceptable, the Yemeni prime minister said on Sunday.

U.S. President Barack Obama’s National Security Council recently gave the CIA the green light to kill Anwar al-Awlaki, a U.S.-Yemeni citizen whom they accuse of having links to al Qaeda and who is believed to be in hiding in southern Yemen.

“We will absolutely not accept that,” Prime Minister Ali Mohammed Megawar told Reuters in an interview.

“We are a sovereign country.”

According to the latest information, Awlaki was still in the southern Yemeni province of Shabwa, Megawar said.

U.S. authorities say Awlaki was added to the CIA’s hit list after he became “operational” in al Qaeda in the Arabian Peninsula, which claimed responsibility for a failed plot to blow up a U.S.-bound passenger plane on Christmas Day.

The Nigerian man accused in the attempted bombing met Awlaki while visiting Yemen, and the U.S.-born preacher also had contacts with a U.S. Army psychiatrist who shot dead 13 people at a U.S. Army base in November.

Yemen’s foreign minister said earlier this month that Yemen would not hand Awlaki over to Washington, but instead put him on trial if he is arrested.

After the September 11, 2001 attacks, the United States and Yemen joined forces to fight al Qaeda, and Washington has kept a close eye on the impoverished country, which borders the world’s top oil exporter Saudi Arabia.

Awlaki, whose father is a former minister in Yemen, travelled to the country in 2004, where he taught at a university before he was arrested and imprisoned in 2006 for suspected links to al Qaeda and involvement in attacks.

He was released in December 2007 because he said he had repented, but he was later charged again on similar counts and went into hiding.

Megawar said he disagreed with Yemen being described as a refuge for al Qaeda.

“Yemen is not a safe haven for terrorists. Yemen has al Qaeda, we recognise that … but they are spread out in different areas and are scared as a result of the strict crackdown by the government for all their actions”, he said.

“Yes, al Qaeda is present in Yemen, al Qaeda is a risk in Yemen, but there is exaggeration by the media,” he said.

Last week, a fugitive Saudi Arabian man who was detained for several years at the U.S. military prison at Guantanamo until his release in 2006, was named as a senior member of Al Qaeda’s Yemen wing, according to a tape by the group. [ID:nLDE64R043]

Megawar said Othman Ahmed al-Ghamdi’s appointment as a senior operative was another development in the ongoing fight against militants in Yemen but added, “We have nothing to do with who comes and goes.” (Editing by Myra MacDonald)

U.S. rift with Brazil, Turkey on Iran deepens

The United States clashed with Brazil and Turkey on Friday over the next steps on Iran, with U.S. officials saying a proposed atomic fuel deal for Tehran must not derail the U.N. drive to impose new sanctions over Iran’s nuclear program.

In signs of the deep rift between the United States and two influential nonpermanent members of the U.N. Security Council, Turkey and Brazil stepped up to defend their proposal as the right thing to do to reduce tensions over the Iranian nuclear impasse.

“We know we did the right thing,” Brazilian Foreign Minister Celso Amorim told a news conference, flanked by Turkish Foreign Minister Ahmet Davutoglu.

“We are seeking to follow a path of dialogue, a path of conversation and understanding, and that has produced results.”

Brazilian President Luiz Inacio Lula da Silva and Turkish Prime Minister Recep Tayyip Erdogan traveled to Tehran earlier this month to broker the deal under which Iran agreed to send 1,200 kg of its low-enriched uranium abroad in exchange for specially processed fuel for its medical isotope reactor.

Senior U.S. officials dismissed the fuel deal proposal, saying Turkey and Brazil appeared to have been hoodwinked by Tehran in its efforts to escape new U.N. sanctions.

“We very much recognize the sincere efforts that were made by Brazil and Turkey … but unfortunately I think the motives of the parties were quite different,” said one senior U.S. official, speaking on condition of anonymity.

“I think Iran’s main interest was to have a proposal in play that would reduce momentum toward a sanctions resolution.”

Iran rejects Western allegations its nuclear program is aimed at developing weapons. It says its atomic ambitions are limited to the peaceful generation of electricity and refuses to suspend uranium enrichment.

Iran’s foreign minister said on Friday he believed Western powers were considering the fuel deal, which he said could foster cooperation instead of confrontation over Iran’s nuclear plans.

MOVING ON SANCTIONS

The deal brokered by Brazil and Turkey resurrected elements of a compromise floated in October by the International Atomic Energy Agency.

The IAEA proposal was seen as a confidence-building measure to allow more time to work with Tehran. But Iran walked away from the table, setting in motion U.S.-led moves to build consensus around new U.N. sanctions.

The United States and the other permanent Security Council members — Britain, China, France and Russia — along with Germany agreed on the framework for such a resolution this month and plan to move ahead in submitting it to the full council as soon as possible, the U.S. officials said.

“In our view the joint declaration falls short of what’s necessary. But regardless of this … proposal, it is important that we proceed to New York to adopt the resolution,”

The officials said the fuel swap proposal did nothing to address the core issues of Iran’s continued enrichment of uranium or its revelation of a secret centrifuge facility at Qom, to which the IAEA has still not been given full access.

They also said Iran had moved forward both with enrichment plans and with building its nuclear stockpile since the original proposal was proposed — making the fuel swap idea pointless.

“Now Iran has roughly doubled the amount of its low enriched uranium. Even if you send 1,200 kilos out, there’s more than enough remaining to produce a nuclear bomb,” the official said. “Time has overtaken the original proposal and this has not been corrected.”

State Department spokesman P.J. Crowley said Secretary of State Hillary Clinton, who has led the U.S. drive for tough new measures against Iran, would likely meet Turkish Foreign Minister Ahmet Davutoglu in Washington on Tuesday to compare notes on Iran.

Davutoglu, speaking in Brazil on Friday, said Turkey and Brazil were following in the footsteps of U.S. President Barack Obama, whose 2008 campaign platform called for greater engagement of the Islamic Republic.

“This (agreement) is a success for Turkey and Brazil, but it is also a success for President (Barack) Obama’s policy of engagement,” Davutoglu said.

(Additional reporting by Tsvetelia Tsolova in Sofia; Editing by Peter Cooney)

China again urges calm over Korean peninsula

China’s Foreign Ministry repeated its call for calm and restraint on the Korean peninsula, but refused to be drawn on the sinking of a South Korean ship by a Northern torpedo in March.

Vice Foreign Minister Zhang Zhijun said China had no first-hand information on the sinking of the South Korean ship Cheonan in March, which international investigators officially ruled last week was due to a North Korean torpedo.

China was still evaluating the information, Zhang said.

“We have always believed that dialogue is better than confrontation,” Zhang said, the day after North Korea said it would cut all ties with the South.

(Reporting by Chris Buckley; Writing by Lucy Hornby; Editing by Nick Macfie)

Turkey urges Israel to let in humanitarian convoy

Turkey urged Israel on Tuesday to lift its blockade of Gaza and allow a Turkish-led convoy of ships carrying humanitarian aid to enter the Hamas-controlled enclave.

Israel and Egypt closed Gaza’s borders after Hamas took control of the territory in 2007 and refused to forswear violence against the Jewish state. Gaza’s 1.5 million people face shortages of water and medicine.

An international flotilla carrying some 10,000 tonnes of medical equipment, housing material and other supplies is expected to reach Israeli waters by Friday, according to a Turkey-based humanitarian aid group leading the effort.

Speaking to reporters at a news conference during a U.N. meeting on the Israeli-Palestinian peace process, Turkish Foreign Minister Ahmet Davutoglu said his government had been in touch with Israel about the aid convoy.

“Acting calmly is necessary rather than raising already heightened tensions,” he said. “The blockade on Gaza should be lifted.”

He added: “We don’t want new tensions … We believe Israel will use common sense towards this civilian initiative.”

The Israeli government is under international pressure to relax its blockade, which the United Nations says punishes people in Gaza over the policy of Islamist Hamas, which is pledged to Israel’s destruction.

Since the closure, a number of ships carrying humanitarian aid have been turned back by the Israeli navy but some have reached the territory.

Turkey, the only Muslim member of NATO, is one of Israel’s closest allies in the Middle East but relations have soured, in part due to Prime Minister Tayyip Erdogan’s frequent criticism of the Jewish state’s Palestinian policies.

Robert Serry, the U.N.’s special co-ordinator for the Middle East peace process, said the blockade could only embolden militants.

“I am particularly concerned that the current closure creates unacceptable suffering, hurts forces of moderation and empowers extremists. I call for the closure policy to end,” said Serry, who also serves as U.N. Secretary-General Ban Ki Moon’s representative to the Palestinian Territories.

The convoy, organised by the Istanbul-based Foundation for Human Rights and Freedoms and Humanitarian Relief (IHH), includes vessels from Britain, Greece, Algeria, Kuwait, Malaysia and Ireland.

It is carrying some $20 million worth of supplies, making it the largest ever to the Palestinian Territories, Salih Bilici, spokesman for the pro-Palestinian IHH, told Reuters.

“Part of this mission is to draw attention to the suffering of the people of Gaza,” Bilici said. “We are not concerned that our safety is at risk, because we are a humanitarian group without political aims.”

The group is determined to deliver the aid directly to Gaza, rather than leaving it with Israeli authorities, Bilici said.

(Editing by Maria Golovnina)

Australia expels Israeli diplomat over Dubai hit

Australia’s government said on Monday it had ordered the expulsion of an Israeli diplomat over the use of fake passports in the assassination of a top Hamas militant in Dubai in January.

Foreign Minister Stephen Smith said an investigation had left no doubt that Israeli intelligence services had been behind the forgery of four Australian passports used by suspects in the killing of Mahmoud al-Mabhouh in a Dubai hotel room.

(Reporting by Rob Taylor; Editing by Ed Davies)