Neutral Nuclear Facility

Foreign Minister Frank-Walter Steinmeier said in the Handelsblatt newspaper on Wednesday that a plant overseen by the UN nuclear watchdog would ensure that "countries do not use uranium enrichment secretly to build nuclear weapons."

"We must find ways in which each country can use nuclear energy in a peaceful and unlimited manner without making access to the bomb possible," Steinmeier said.

Such a facility would also "ensure the security of energy supplies," he added.

Germany, which holds the six-month rotating presidency of the European Union until the end of June, proposes that the enrichment plant be built on neutral territory.

He said the facility could be built in a "location acceptable to all sides," with the host nation surrendering sovereign rights.

"The area would be virtually extra-territorial, similar to the seat of the United Nations in New York," he said.

IAEA would decide

He added if such a facility were to be built, then the IAEA would have the task of deciding to whom enriched materials would be given based on criteria that would exclude abuse.

"There is no other authority that is more qualified or has more authority to make such decisions," he said.

Steinmeier's proposal comes ahead of a Wednesday meeting in London of officials from six world powers who intend to discuss Iran's nuclear plans.

Many Western countries suspect Iran is trying to build a nuclear weapon, but the Islamic republic insists it is merely developing a nuclear energy capability.