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Vienna, Austria – The United States said Monday it would accept Iran’s request for U.N. aid on seven nuclear projects but urged the International Atomic Energy Agency to deny assistance for a plutonium-producing reactor that could be used to make a bomb.

The decision reflected U.S. recognition that it was futile to try to block IAEA help to Iran on all eight projects because of opposition by most of the agency’s 35-nation board. It also appeared prompted by an IAEA ruling that neither the reactor nor the other projects posed a proliferation threat.

Some diplomats accredited to the Vienna-based U.N. nuclear watchdog agency also suggested it could reflect a U.S. decision to tread lightly while Washington weighs the possibility of direct dialogue with Iran on reducing violence in Iraq. The diplomats spoke on condition of anonymity because they were not authorized to speak publicly.

U.S. officials declined to comment.

“We are prepared to join consensus” on approving the seven other requests from Iran if the agency’s board agrees to deny aid to Iran on building the Arak research reactor, said Gregory L. Schulte, the chief U.S. delegate to the IAEA.

But Schulte suggested there would be no compromise on Arak.

“Given past board decisions, continued questions about Iran’s nuclear program, and the risk of plutonium being diverted to use in weapons, the United States joins with others who cannot approve this project,” he said.

His comments to the closed committee meeting on IAEA technical aid to member countries were made available to The Associated Press.

The council’s main concern is Iran’s defiance of a demand that it freeze uranium enrichment, but the Arak heavy-water reactor is also worrisome because of its ability to produce plutonium.

A Security Council resolution in July demanded that Iran stop all enrichment-related activities. But it did not specifically mention Arak, saying only that Tehran had to stop all “reprocessing activities.”

The European Union also urged the board to refuse approving aid for the Arak project once it moves from its committee meeting to a full session Thursday.

“Our concern is that such a reactor would in the future produce significant quantities of plutonium and would involve a significant proliferation risk,” an EU statement said.

Canada and Australia also urged that help on Arak be denied, said a diplomat coming out of the closed meeting.

In contrast, Russia and China – the key blockers of tough U.N. Security Council sanctions on Iran backed by the U.S. and some European allies – suggested they had no objections to IAEA help on Arak, said the diplomat.

In Tehran, Iranian President Mahmoud Ahmadinejad was cited on the website of Iran’s Broadcasting Company as saying the Islamic republic would succeed in developing a full nuclear program, despite “pressure by the U.S. and Israel.”

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