Iran and the International Atomic agency square-up to each other over Tehran’s nuclear programme but talks are continuing.The top nations within the UN’s nuclear watchdog, the I.A.E.A. have drafted a resolution in response to Iran’s resumption of nuclear activities. But it falls short of referring Tehran to the U.N. Security Council. Representatives of the I.A.E.A. are aware that Iran has broken the seals at its Isfahan uranium processing plant, but surveillance cameras are said to be in place to allow the UN inspectors to view the work. U.N. Secretary-General, Kofi Annan is urging restraint and has called for talks to continue. While Iran is currently resisting the European lead U.N. restrictions, Tehran has the support of other developing states such as India and Brazil. Iran restarted work at the plant after rejecting economic and political incentives from Britain, France and Germany, to give up its nuclear programme.