Mounting pressure from the United States to impose new sanctions against Iran put Tehran's nuclear program at the focus as the United Nations' nuclear watchdog convened on Monday.

"I am increasingly disturbed by the current stalemate and the brewing confrontation -- a stalemate that urgently needs to be broken, and a confrontation that must be defused," Mohamed ElBaradei, Director-General of the International Atomic Energy Agency (IAEA), said in his introductory statement to the agency's board meeting.

The 35-nation board of governors of the IAEA started a regular meeting here Monday, discussing topics ranging from the agency's 2006 annual report to nuclear safety and security issues, with Iran's nuclear program set to be the focus.

Despite the present deadlock, ElBaradei said he still prefers negotiated solution to the issue.

"I continue believe that dialogue and diplomacy are ultimately the only way to achieve the negotiated solution foreseen in the relevant Security Council resolutions," ElBaradei said.

"The earlier that conditions are created to move in this direction, the better," he added.

The UN Security Council unanimously adopted on March 24 a new resolution, the second punitive one, with tougher sanctions to pressure Iran to suspend uranium enrichment activities.

An IAEA report two weeks ago said that Iran continued to resist the UN Security Council ban on enrichment and instead was expanding its activities.

ElBaradei reiterated the report's findings to the IAEA board.

"The facts on the ground indicate that Iran continues to perfect its knowledge relevant to enrichment, and to expand the capacity of its enrichment facility," he said.

ElBaradei said the expansion arouse a key proliferation concern since the IAEA made no progress in its efforts to resolve outstanding issues relevant to the nature and scope of Iran's nuclear program.

The UN nuclear watchdog chief also accused Iran of continuing to put additional restrictions and limitations on IAEA's verification activities, while acknowledging Iran continues to provide IAEA access to its nuclear material and facilities, including the enrichment facility at Natanz, in accordance with its safeguards agreement.

"The agency has been able to verify that no declared nuclear material in Iran has been diverted," ElBaradei said.

The United States and some European countries accused Tehran of trying to develop nuclear weapons with its uranium enrichment project, an accusation Iran denies, saying it only wants it for electricity.

The United States is using the IAEA meeting to gather support for a third round of sanctions against Iran, which Iran is trying to avoid.

On the occasion of the IAEA board meeting, Iran held high-level nuclear talks with the European Union in Vienna Monday morning, a move billed as a diplomatic effort to relieve pressure.

Javad Vaedi, a deputy to Iranian chief nuclear negotiator Ali Larijani, met with Robert Cooper, a top aide of EU foreign policy chief Javier Solana, which was intended to prepare for more talks between Larijani and Solana.

"Today's working session was good. I consider it kind of constructive ... (but) you should not expect kind of a huge miracle," Vaedi said.

"We made progress but one cannot expect miracles in this business," Cooper, together with Vaedi, told reporters at a press briefing following the meeting.

Larijani met with Solana in Madrid, Spain more than ten days ago, for talks that failed to break the deadlock over Tehran's nuclear program.

Although Larijani and Solana agreed to intensify their dialogue with another one face-to-face in a meeting in two weeks' time, the date has yet to be set.

Meanwhile, Vaedi had also planned to meet ElBaradei, but the eye-catching event was later canceled.

The aborted meeting was termed as explanatory as Iran would use the chance to answer some questions about its current nuclear program, a move to show Tehran's willingness to cooperate.

But the meeting was abruptly canceled due to Iran's domestic reason, western diplomats said.

During the five-day meeting, the Vienna-based IAEA will also pick up the nuclear issue on the Korea Peninsula, diplomats said.

Source: Xinhua