Merkel, Sarkozy say Iran still poses a threat

By Francois Murphy

PARIS (Reuters) - Germany and France said on Thursday Iran's nuclear programme was still a threat and the search for more U.N. sanctions should go on despite a U.S. intelligence report that Tehran was no longer trying to build an atomic bomb.

Speaking at a joint news conference with French President Nicolas Sarkozy, German Chancellor Angela Merkel said the existing dual track policy of preparing sanctions against Tehran while leaving the door open to negotiations should go on.

"I think that we are in a process and that Iran still poses a threat," Merkel said, adding that talks between mediator Javier Solana and Iran's top nuclear negotiator should continue.

Sarkozy said he fully agreed with Merkel, adding: "What has made Iran move until now is sanctions and firmness."

The U.S. National Intelligence Estimate published Monday said Iran had stopped its nuclear weapons program four years ago. It said Iran was continuing to develop the technical means that could be applied to producing weapons.

The report appears likely to increase resistance from Russia and China to U.S. demands, backed by France and Britain, for a third round of United Nations sanctions against Iran over its atomic programme.

Russia has said the report is a factor that will be taken into account in negotiations over sanctions, and the head of the U.N. nuclear watchdog, Mohamed ElBaradei, said the NIE report "somewhat vindicated" Iran.

Because of international concerns that Iran is secretly pursuing nuclear weapons, the U.N. Security Council has imposed two rounds of sanctions against Tehran and demanded that it halt uranium enrichment, a process that can produce fuel for power plants or, potentially, atom bombs.