Foreign Ministry spokesman Hamid Reza Asefi says Iran is reviewing a European proposal which offers Tehran a package of incentives in return for suspending some of its nuclear activities. The official said Iran would give a noteworthy response, which incorporates the country's national interests, but stressed that no such answer had been delivered thus far.

"Until 10:30 this morning (0700 GMT), the Islamic Republic of Iran has not given any response to the Europeans regarding the Paris negotiations," the state-run Central News Bureau quoted Asefi as saying. The official hinted at `problems` within the proposal, tabled by France, Britain and Germany, which are goading Iran to abandon its nuclear fuel cycle, including uranium enrichment. "If the Paris negotiations had been free of any problem, Tehran`s response would definitely have been delivered so far," Asefi said, when asked about reasons of Iran`s delay. The European trio reportedly reached a `preliminary` deal with Iran in Paris last weekend under which Tehran would halt an enrichment program in exchange for political and economic incentives.

According to informed sources in Vienna, Iranian authorities will announce Tehran`s answer in a matter of hours to the tentative agreement which was reached in Paris Saturday following `strenuous` talks held with representatives of Germany, France and Britain. Speculation has been rife about how Tehran would react to the deal, with certain diplomatic circles saying the answer would be disappointing, while others have been upbeat. According to news agencies, the International Atomic Energy Agency (IAEA) was awaiting a letter from Tehran which would clarify the country`s position to the proposal.

Under the deal Iran would freeze all nuclear fuel enrichment and reprocessing activities until it has reached a final agreement with the EU over a package of economic, technological and security incentives in return for abandoning nuclear activities. The EU incentives reportedly include a guaranteed supply of reactor fuel, assistance to construction of a light-water power reactor and a resumption of stalled trade talks.

While the Europeans have called on Iran to agree to an indefinite freeze on enrichment, Tehran has expressly stated that it cannot be induced to scrapping the process for good. Iran is wearing out a November 25 deadline set by the IAEA Board of Governors for full review of its nuclear program and calling on the country to immediately suspend all uranium enrichment activities. Tehran has to prove its nuclear program is civilian or risk being hauled to the UN Security Council for possible sanctions. The country has dismissed the deadline, saying it does not accept any obligation in this regard. Iran says its nuclear program is geared at power generation, rejecting United States claims which says it is a cover to build nuclear weapons.