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* Iran, powers to meet in Baghdad on May 23

* Iran says “optimistic”, wants sanctions lifted

* Iran accused West of double standards

(Adds quotes, background)

By Fredrik Dahl

VIENNA, May 2 (Reuters) – Iran said on Wednesday it was

seeking an end to Western sanctions over its arms programme

during talks with world powers and criticised France for helping

Israel, the only country in the Middle East widely believed to

have atomic weapons.

An adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei

said the talks in Baghdad on May 23 should lead to the lifting

of sanctions, according to Iranian media.

The comments reflect increasing emphasis in the Islamic

Republic that an end to sanctions is vital to the success of the

talks. It was also the first time an influential political

figure explicitly said he expects progress on the issue.

“At the least, our expectation is the lifting of sanctions,”

Gholam-Ali Haddad Adel said in answer to a question.

The United States and its allies say Iran’s nuclear

programme is a cover for developing atomic weapons, a charge

Tehran denies.

They have imposed new sanctions against Iran’s energy and

banking sectors since the beginning of this year and the

European Union is set to impose a total embargo on the purchase

of Iranian crude oil in July.

In Vienna, Deputy Foreign Minister Mohammad Mahdi

Akhondzadeh sought to turn the tables on the Western powers. He

said nuclear weapons had no place in Iran’s defence doctrine,

and accused “certain” states of double standards.

He took aim at France, a key player in tightening sanctions

on Iran, and said it had “spared no effort” in helping Isreal –

widely believed to be the only nuclear-armed state in the Middle

East. He did not elaborate.

“The existence of nuclear weapons in the hands of…Israel

continues to pose the gravest threat to the stability and

security” in the Middle East, Akhondzadeh said.

Israel neither confirms nor denies it has nuclear weapons,

under an ambiguity designed to deter regional foes but avoid

arms races.

The United States and Israel regard Iran’s nuclear ambitions

as the main threat in the volatile region, prompting persistent

speculation they might attack its atomic sites if diplomacy

fails to resolve the dispute.

OPTIMISTIC ABOUT PROGRESS

Akhondzadeh said the existence of nearly 23,000 nuclear

warheads in the world and their continued modernisation was the

“most serious threat to the survival of mankind.”

The nuclear weapon states should agree a target date for

“the total elimination” of their atomic arsenals, he said.

The five recognised nuclear weapon states are the United

States, Russia, China, France and Britain.

Akhondzadeh said Iran was optimistic about progress in the

talks in Baghdad, but it will never give up its right to the

peaceful use of atomic energy.

“We continue to be optimistic about upcoming negotiations,”

Akhondzadeh said in a speech to a nuclear non-proliferation

conference in Vienna, attended also by Western states.

But he added: “There should be no doubt that the great

nation of Iran…will never abandon exercising its inalienable

right to peaceful use of nuclear energy and technology,”

The talks with the United States, Russia, China, Germany,

France and Britain resumed in mid-April in Istanbul after more

than a year – a chance for the powers and Iran to halt a

deterioration in diplomacy and help avert the threat of a new

Middle East war.

Western governments have credited the sanctions against

Iran’s financial institutions as instrumental in forcing Tehran

back to the negotiating table.

European diplomats have said an EU oil embargo is a valuable

tool and is unlikely to be lifted unless tangible progress is

made at the meeting.

“I hope the Baghdad negotiations complete the talks that

took place in Istanbul and the other side should take note that

it should use rational behaviour with Iran and (the) country

will never surrender to pressure,” Fars news agency quoted

Haddad Adel as saying.

(Additional reporting by Marcus George in Dubai; Writing by

Alessandra Rizzo; Editing by Diana Abdallah)