Major U.S. shift on Iran

The Bush administration, in a major shift, is expected on Friday to adopt a European proposal to offer economic incentives to abandon its nuclear ambitions.

The United States is expected to allow Iran to join the World Trade Organization and buy aircraft spare parts.

In return, Britain, France and Germany have agreed to shift gears by pledging that if their negotiations with Iran collapse or if Tehran reneges on a promise to suspend nuclear enrichment activities, they will join Washington in bringing the issue to the U.N. Security Council, which could impose sanctions.

Second reversal

The U.S. decision is the second significant policy reversal to emanate from Washington in two days. Thursday, Bush administration officals said the United States would accept a political role for Islamist Lebanese group Hizbullah if the group disarmed.

Previously, the administration has advocated a tough approach towards the organization-- largely thought to be a proxy of Iran-- which the U.S. considers a terrorist group.

Secretary of State Condoleezza Rice told reporters there U.S. and European negotiators spoke “in great detail (about) the Iran issue,” but added that the American's are skeptical of the plans chances.

Another U.S. official added: "The Europeans are ready to make sure Iran meets her obligations and to look at what next steps to take."

Scandalous intelligence

The announcement came on the heels of a damaging report earlier in the week about U.S. intelligence vis-a-vis Iran's nuclear devlopment.

On Wednesday, the New York Times website said a panel that will report to Presient Bush at the end of March will report that the United States is not able to make "firm judgments about Iran's weapons program."

The Times report said one person who described the panel's deliberations and conclusions characterized American intelligence on Iran as "scandalous"