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Turning to Iran, today the International Atomic Energy Agency will deliver its report on military aspects of Iran's nuclear programme. The report lays out clearly and objectively the evidence that the Agency has uncovered of Iran's development of nuclear weapons technology. The Board of Governors of the IAEA will convene later this month to consider these grave findings. The assertions of recent years by Iran that their nuclear programme is wholly for peaceful purposes are completely discredited by this report.

Iran is ramping up its production of uranium enrichment to levels for which it has no plausible civilian use, but which could easily and quickly be converted into weapons-grade material. The uncovering of the recent plot to assassinate the Saudi Ambassador in the United States also shows Iran's apparent willingness to sponsor terrorism outside its borders.

Iran needs to change direction. We want a negotiated solution and have extended the hand of reconciliation to Iran time and time again. We are prepared to have further talks but only if Iran is prepared to engage in serious negotiations about its nuclear programme without pre-conditions. If not, we must continue to increase the pressure and we are considering with our partners a range of additional measures to that effect.

Iran's actions not only run counter to the positive change that we are seeing elsewhere in the region; they may threaten to undermine it, bringing about a nuclear arms race in the Middle East or the risk of conflict.

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