Thank you very much Mr. President.

The United States thanks Chairman Verbeke for his report on the recent activities of the Iran Sanctions Committee. He leads the committee with distinction, and we are grateful for his service.

The 90-day report makes clear that Iran is not complying with its Security Council obligations.

This is an issue of fundamental importance to this Council and we must remain seized of the matter until all concerns with Iran's nuclear program have been addressed.

As Dr. ElBaradei, the IAEA Director General, has stated on three occasions since 1747 was adopted in March -- Iran has failed to comply with its obligations to suspend all proliferation sensitive nuclear activities. Although very limited progress has been made on the Iran-IAEA Work Plan, Iran is still failing to cooperate fully and transparently with the IAEA in its investigations.

Mr. President, Iran must:

1) Suspend its proliferation sensitive nuclear activities without delay, which would then allow negotiations within the framework of the P5+1; and

2) Give the IAEA its full cooperation in implementing the Work Plan.

The United States remains deeply troubled by Iran's noncompliance. The P5+1 continue their consultations in capitals, and we hope to have a text of a new sanctions resolution before the full Council as soon as possible.

In closing, Mr. President, let me say a few words about the recent announcement by the Russian Federation to send Iran enriched uranium for use in the nuclear power plant being constructed at Bushehr.

Resolution 1737, while prohibiting states from assisting Iran with sensitive elements of the nuclear fuel cycle, makes an exception for providing Iran with assistance and fuel for light water reactors such as Bushehr. As President Bush has noted, while he supports Russia's decision, Russia's arrangement to supply nuclear fuel for the entire period of Bushehr's operation demonstrates one thing: Iran does not need to pursue uranium enrichment and other sensitive aspects of the nuclear fuel cycle to have access to nuclear power.

We have joined Russia and other members of the P5+1 in offering Iran, if it complies with the requirements of the Council, cooperation in the development of a civil nuclear power program. This includes active international support in building state-of-the art light water power reactors and reliable access to fuel cycle, to nuclear fuel. If Iran is, in fact, serious about using nuclear power to meet its energy needs, the best way for it to proceed is to suspend its proliferation sensitive nuclear activities and accept the P5+1 offer. We await Iran's answer.