...European diplomats said the three European powers that have been negotiating with Iran -- Britain, France and Germany -- had adopted a softer tone to be seen to be giving Ahmadinejad a chance and to win over waverers on the IAEA board.

But they said the United States and the EU believed they had the support of at least 20 countries on the 35-member board, which meets beginning on Monday. One option being discussed was to put forward a resolution but hold off a vote for two or three weeks to give Iran a final chance to halt uranium conversion.

Nuclear powers Russia, China, India and Pakistan are all reluctant to back a referral and diplomats say Iran, the world's second-biggest oil producer, is convinced it has the upper hand and has little to fear from the Security Council.

The council has the power to take action against Iran ranging from a verbal slap on the wrist to a total trade ban.

IAEA chief Mohammed ElBaradei has urged the Western powers to wait but the diplomats said delay would only embolden Iran to push on towards nuclear fuel enrichment having "got away" with the precursor phase of uranium conversion.

Besides, the diplomatic arithmetic would get tougher when more nonaligned nations join the IAEA board later this month...