Margaret Beckett: Iran is undermining the authority of the International Atomic Energy Agency through its failure to take the confidence-building measures repeatedly requested of it by the IAEA. In the process, Iran is undermining the credibility of the non-proliferation regime, which remains a cornerstone of international peace and security. Iran's insistence on this approach is raising regional and international tensions and risks destabilising the region.

I share the view of my hon. Friend that all the things that he has identified heighten concern about the stance of the Iranian regime. He asks me what the UK is doing. We are part of the EU3, which has been discussing these issues. We are now discussing them with the United States, Russia and China in an attempt to accelerate realisation within Iran that the international community as a whole is united in wishing Iran to return to compliance with what is urged on it by the IAEA. We have been engaged in substantial talks on that-particularly my predecessor, to whom I pay tribute in this respect-and we will continue to be so until, as we hope, success is achieved.

We should try to put together a balanced approach that clearly indicates the danger of sanctions against Iran unless it is prepared to come back into compliance with the will of the international community, but there is also a great deal of discussion about whether it is possible to offer a substantial package of incentives. That balance is important to give Iran a clear choice which it can sensibly, reasonably and viably make.

Everyone must recognise the dangers to the region as a whole of problems in Iran and Iraq. It is clearly not the intention of the international community to take military action, but it is the intention of the international community to encourage Iran to see the nature of the choice that lies before it and to take the choice that is in the interests of the Iranian people.

We take the view that Iran has contravened some of its obligations, but whether or not we take that view matters much less than the fact that the IAEA board has clearly stated that it shares our concern, as has the international community at large. The breach concerns the apparent concealment by Iran of some of its activities. I thank my hon. Friend for his remarks, but my concern is to encourage Iran to see the nature of the choice that lies before it and to make a choice that will contribute to peace and security in Iran and, indeed, provide Iran with civil nuclear power, if that is what it wants, while also contributing to peace and security in the wider world.

I cannot say much more to him at the moment about the nature of the offer that might be made. Work is continuing, and, as I am sure that he will appreciate, the greater the anxiety to make a substantial and worthwhile offer, the more important it is that detailed and careful work is carried out.

I cannot say much more about the nature of the offer or whether it is likely to come in the next few days, but I assure the right hon. Gentleman that thorough work is continuing. Given that what Iran has indicated will be unacceptable, it is clear that Iran is likely to face a stark choice. We all hope that it will not be necessary to move towards sanctions, but if it is necessary to do so, the sanctions will be those that people feel are capable of having an effect. At this point, I no more want to discuss the exact nature of those sanctions than I want to say much more about any formal offer.