ABSTRACT

A.Q. Khan network,* Iran was able to begin the construction of pilot-scale and industrial-scale enrichment facilities at Natanz around 2000.

The long history of Iran's previously secret nuclear activities came to light following the exposure of the Natanz project and other undeclared nuclear facilities in August 2002 by an Iranian opposition group. The resulting international pressure has hampered Iran's nuclear development. In October 2003, Iran reached agreement with the EU-3 (the United Kingdom, France and Germany) to acknowledge its previously undeclared nuclear activities, accept more intrusive International Atomic Energy Agency (IAEA) inspections under the Additional Protocol and 'temporarily' suspend all uranium enrichment and reprocessing activities as defined by the IAEA. It did so to avoid a referral to the UN Security Council, which Iran feared could lead to political isolation and international condemnation, economic sanctions, and possibly military confrontation. By mid-2004, disagreements over the scope of suspension led to a new confrontation, as Iran resumed production of centrifuge components and began trial operations at its conversion facility in Esfahan. Faced with a renewed threat of referral to the Security Council, however, Iran reached a new agreement with the EU-3 in November 2004. This restored full suspension of its enrichment activities, including uranium conversion, manufacture of centrifuge components, and the installation, testing, and operation of centrifuges at the Natanz facility. Despite threats to resume conversion, Iran agreed in May 2005 to maintain the

suspension, after the European side agreed to make a detailed proposal for a long-term agreement by the end of July or beginning of August 2005.