* U.N. inspectors seek to clarify Iran uranium "discrepancy"
* U.S. concerned of possible diversion of nuclear material
* Iran dismissed it as "absolutely not an issue"
VIENNA, Aug 16 (Reuters) - The United Nations' atomic
watchdog may decide that less uranium is missing at an Iranian
research site than it had previously thought, diplomats say, and
that may go some way to easing concerns that it may have been
diverted for military use.
U.N. inspectors have asked Iran to explain a "discrepancy"
after an inventory they made last year of natural uranium metal
and process waste at the Tehran facility showed there was 19.8
kg less than the Iranian laboratory's own count.
The United States is concerned the material may have been
diverted to suspected weapons-related research activity. Iran,
which says its nuclear programme is entirely peaceful, dismissed
the reported discrepancy as "absolutely not an issue".
One Western diplomat said it had since been partly
"explained" during talks between Iran and the International
Atomic Energy Agency (IAEA), the Vienna-based U.N. watchdog, and
that discussions on the issue were continuing.
But the details would only become clear in the IAEA's next
quarterly report on Iran's disputed nuclear programme, expected
towards the end of August.
"I've heard that the agency could be revising the figure
lower," another diplomat said, referring to the report prepared
ahead of a Sept. 10-14 meeting of the U.N. agency's 35-nation
board, when Iran is again likely to dominate the agenda.
A third envoy said it was also his understanding that the
IAEA's investigation had resulted in a reduction of the
discrepancy, but he said the research was not yet complete.
There was no immediate comment from the IAEA or Iran's
diplomatic mission in the Austrian capital.
WESTERN CONCERNS
Experts say such a small quantity of natural uranium could
not be used to make a bomb, but that the metal could be relevant
to weapons-linked tests.
In November last year, the IAEA presented a stash of
intelligence indicating that Iran has undertaken research and
experiments that could be relevant for developing atomic arms,
prompting Western states to ratchet up sanctions on Tehran.
The IAEA said in previous reports that the discrepancy at
Jabr Ibn Hayan Multipurpose Research Laboratory (JHL) concerned
uranium metal conversion experiments from 1995 to 2002.
Iran has suggested the discrepancy may have been caused by a
higher amount of uranium in the waste than had been measured by
the U.N. inspectors.
The IAEA said in May that Iran had offered to process the
waste material and extract the uranium, but that the agency had
offered an alternative way to address the problem.
A senior U.S. official said late last year the issue
required "immediate" resolution, citing information indicating
that "kilogram quantities" of natural uranium metal had been
made available to Iran's military programme.
But a European diplomat told Reuters it now seemed to have
become less of an issue, unlike the issue of Iran's uranium
enrichment programme and Western suspicions that Tehran is
seeking to develop a capability to make nuclear weapons.
The uranium discrepancy was likely to be "buried more than
it is at the moment", another diplomat said.
Iran says it is enriching uranium only as fuel for nuclear
power plants, not atomic weapons, but its refusal to curb the
activity has drawn increasingly tough sanctions aimed at its oil
exports.
Enriched uranium can be used to generate electricity, which
is Iran's stated aim, or provide material for weapons if refined
much further, as Western states suspect is Iran's ultimate aim.
(Editing by Jon Hemming)
