NO GERMAN DENIAL

But Berlin did not deny it or say that it was "erroneous."

German government spokesman Ulrich Wilhelm said in a statement to Reuters that it stood firm with the five council members on the issue of Iran in backing the June 6 offer and reiterated that Berlin wanted Iran to suspend enrichment in order to enable negotiations on the offer to take place.

"It's up to Iran, through a suspension of enrichment, to create the conditions for negotiations and win back international trust," Wilhelm said.

"Nothing has changed regarding the position of the six countries and the German government," he said.

Western countries worry that Iran is trying to develop nuclear weapons under cover of an atomic power program. Iran says it only wants peaceful nuclear energy.

Diplomats familiar with the offer say it does allow for Iran to enrich, though the timeframe would have to be negotiated.

Jung did not mention any timeframe when Iran -- which has been enriching uranium for months on a small scale -- could be permitted to make nuclear fuel with the West's blessing. But he said close IAEA oversight would be sufficient to show the world whether Tehran's nuclear program was as peaceful as it says.

"IAEA inspections can provide those assurances through monitoring. That is not a problem," he said.

It may be that the implication that Iran could, at least in theory, safely enrich uranium under IAEA supervion is what prompted the U.S. reaction to Jung's comments. Many in Washington would prefer that Iran not enrich at all for many years to come -- if ever.

But according to one IAEA diplomat, who requested anonymity due to the sensitivity of the issue, there are officials in all six of the countries that made the offer who agree with Jung.

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