IAEA, Iran agree to draw up action plan

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VIENNA, Jun 23 (Reuters): The head of the UN nuclear watchdog said Friday he and Iran's chief negotiator had agreed to draw up a "plan of action" within two months on how to resolve questions about Iran's disputed nuclear programme
International Atomic Energy Agency Director Mohamed ElBaradei described the two-hour meeting with Ali Larijani as "quite satisfying."
"I hope we should be in a position in the next weeks to move forward and break the stalemate where we have been in for the last few months," ElBaradei told reporters.
He said they were drawing up "a plan of action which I hope we should be able to conclude within two months" and then start implementing.
Larijani also spoke of "good progress," but they reported no breakthrough in the core dispute -- Iran's defiance of UN demands to stop uranium enrichment.
Diplomats say that about a year ago, Iran agreed with the IAEA to come up with a plan for resolving outstanding issues within three weeks, but never followed through.
Larijani is due to meet EU foreign policy chief Javier Solana in Lisbon Saturday, seen as the last chance to overcome a stand-off over Tehran's nuclear defiance before world powers start drafting tougher sanctions against it.
Solana has been exploring a face-saving way to allow the Islamic Republic to stop enriching uranium.
I believe our talks with Mr. ElBaradei today will be quite helpful with the process that Mr. Solana is working on to reach an understanding and a solution," Larijani said after the meeting.
The United States, Britain, Russia, France, Germany and China are discussing a third round of penalties against Iran over concerns it is secretly trying to build atomic bombs.
Ratcheting up the pressure on the Islamic state, a British draft for a new UN sanctions resolution proposed that Iran's airlines and ships could be denied landing and transit rights and two or more of its banks could have their assets frozen.