The European Union (EU) agreed on Saturday to give Iran extra time, probably two weeks, to clarify ambiguity on its nuclear response to a package of incentives.

The decision was made during talks on the issue among 25 EU foreign ministers in Lappeenranta, southern Finland, on Saturday, two days after the International Atomic Energy Agency (IAEA) reported that Iran had failed to meet the UN deadline of August 31 to halt uranium enrichment.

The ministers reiterated their full support for EU foreign policy chief Javier Solana, who will hold talks with Iran's chief nuclear negotiator Ali Larijani early next week to clarify ambiguity on Iran's nuclear response to the offer of incentives by the world's six major powers.

In its 21-page response to the offer from Britain, China, France, Russia, the United States and Germany, Iran refused to stop enrichment but said it was ready for more talks.

Diplomats said the EU ministers wanted to give diplomacy another chance before any sanctions were imposed on Iran, although Iranian President Mahmoud Ahmadinejad said on Saturday that Iran would not give up its right to nuclear technology.

Although the EU seemed to want to keep the door of dialogue with Tehran open, Britain, France and Germany, who have been spearheading EU efforts to get Iran to stop its enrichment activities, all warned that time was running out.

"We don't want to slam the door but we need a signal from Iran that it is ready to move in our direction," German Foreign Minister Frank-Walter Steinmeier said.

The EU foreign ministers will meet in Brussels on September 15 on the nuclear standoff, when Solana will report back to them.

Meanwhile, the six major powers, whose package of incentives has failed to persuade Iran to halt enrichment, will meet in Berlin, Germany, next Thursday to discuss the way forward.

In Tehran, visiting UN Secretary-General Kofi Annan said on Saturday that his meeting with Iran's chief nuclear negotiator Ali Larijani had been constructive and satisfactory.

Speaking to reporters after the closed-door meeting, Annan said that he discussed with Larijani regional issues and Iran's nuclear issue which are of interest to both Iran and the United Nations.

"The talks were very helpful and would assist me in my forthcoming tasks," Annan said.

Larijani termed the talks as constructive, saying Annan's view on Iran's nuclear issue was positive.

"Our response to the six-nation package was based on Mr. Annan's advice," Larijani said. He added that the UN chief treated regional issues and Iran's nuclear program in a "highly serious and sensitive" way, prompting the need for "continuous negotiations".

"Mr. Annan's view on Iran's nuclear issue is positive and we will support his efforts," he said.

As diplomatic efforts were underway for a solution to the nuclear standoff, Iran's deputy foreign minister for economic affairs, Alireza Sheikh-Attar, warned on Saturday that UN sanctions on Iran would harm the interests of world oil consumers.

"Putting Iran under sanctions will damage the big countries which consume oil. We have a plan for different scenarios to combat any possible sanctions," he said.

Another senior official, Iran's representative to the IAEA Ali Asghar Soltanieh, warned on Saturday that Iran would revise its policy of cooperation with the agency if sanctions were imposed.

"We will continue our policy of cooperation only if there are no measures against Iran and our rights are not violated," he said.

Source: Xinhua