President says he is open to talks

British Prime Minister Tony Blair called the U.S. offer a 'big step forward.'
TEHRAN, Iran (AP) -- Iran's president said Thursday his regime is ready for talks over its nuclear capabilities, but he sent mixed signals on how much is open for negotiation and suggested Tehran has the upper hand in its showdown with the West.
Mahmoud Ahmadinejad repeated Iran's position that uranium enrichment is an untouchable national right, a clear jab at the West two days after Iran received a package of economic and technological incentives to suspend the program.
But he also offered some signs of flexibility without specifically mentioning the proposal. In a speech at an industrial city, he said Iran would hold dialogue on "mutual concerns" with foreign powers -- including the United States -- if they took place "free from threats."
A report to the U.N. nuclear agency's board, meanwhile, said Iran slowed enrichment over the past month but picked up the pace Tuesday, the day the proposal for talks was delivered. There was no indication in the report, obtained by The Associated Press, that the two events were linked.
While the slowdown in enrichment could reflect a decision by Iran to send a positive signal before talks, a senior U.N. official said it also could be the result of technical difficulties. The official agreed to discuss the confidential report only if not quoted by name.
Upper hand?
Ahmadinejad portrayed Iran as having forced Washington and its allies to accept the Islamic regime's "greatness and dignity" and increasingly bend to its will.
The shifting messages are seen as part of Iranian posturing before possible talks, which could include the United States after a nearly 27-year diplomatic freeze. Western nations, led by the U.S., worry Iran's uranium enrichment technology could become the backbone for a nuclear arms program. Iran insists it only seeks electricity-producing reactors.
"The nation will never hold negotiations about its definite rights with anybody, but we are for talks about mutual concerns to resolve misunderstandings in the international arena," Ahmadinejad told thousands of people in Qazvin, about 60 miles northwest of Tehran.
In a major policy shift, the United States agreed last week to join France, Britain and Germany in talks with Iran, provided Tehran suspends all suspect nuclear activities. Tehran has welcomed direct talks with Washington, but rejected any preconditions.
Ahmadinejad did not say whether Iran would accept the Western package of incentives, which were presented Tuesday by the European Union's foreign policy chief, Javier Solana.
Its contents have not been made public, but diplomats have said the package includes economic rewards and a provision for some U.S. nuclear technology if Iran halts enriching uranium -- a major concession by Washington. World powers also have suggested the length of the proposed enrichment suspension could be subject to negotiation, diplomats said.
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