Mr. Chairman,

I will begin by reporting on two important IAEA conferences which have taken place since the last meeting of the Board.

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Implementation of Safeguards in the Islamic Republic of Iran
I will now turn to the implementation of safeguards in the Islamic Republic of Iran.

The Agency continues to verify the non-diversion of nuclear material declared by Iran under its Safeguards Agreement. However, Iran is not providing the necessary cooperation to enable us to provide credible assurance about the absence of undeclared nuclear material and activities. The Agency therefore cannot conclude that all nuclear material in Iran is in peaceful activities.

The Agency has not been able to begin substantive work with Iran on resolving outstanding issues, including those related to possible military dimensions to Iran's nuclear programme. Since my previous report, no further talks aimed at concluding the structured approach document have been held. However, another round of talks is planned for 27th September in Vienna. The Board of Governors has stressed that it is essential for Iran to immediately conclude and implement the structured approach. The Agency remains committed to working constructively with Iran, under the country's new Government, to resolve outstanding issues by diplomatic means.

Iran is still not implementing the modified Code 3.1 of its Subsidiary Arrangements General Part, despite having made statements about the construction of new research reactors, new uranium enrichment facilities and new power reactors. The lack of up to date design information on the IR 40 Reactor is having an increasingly adverse impact on our ability to effectively verify the design of the facility and to implement an effective safeguards approach.

Given the nature and extent of credible information available to the Agency about possible military dimensions to Iran's nuclear programme, it remains essential and urgent for Iran to engage with us on the substance of our concerns. The Agency reiterates its request that Iran, without further delay, provide substantive answers to the Agency's detailed questions regarding the location within the Parchin site and the foreign expert, and provide access to the location concerned.

I continue to urge Iran to fully implement its Safeguards Agreement and its other obligations and to engage with the Agency to achieve concrete results on all outstanding substantive issues.

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