Beijing keen on talks to resolve Iran issue.

BEIJING: China said Thursday it still preferred diplomacy to sanctions in resolving the dispute over Iran’s nuclear program, a day after Britain’s U.N. ambassador said China had agreed for the first time to discuss new measures against Tehran.

China, which relies on Iran for much of its energy, traditionally opposes sanctions, although it went along with three earlier U.N. sanctions resolutions.

Dialogue remained “the best option, which agrees with the interests of all parties, and is also conducive to regional peace and stability,” Foreign Ministry spokesman Qin Gang told reporters at a regularly scheduled news conference.

“The diplomatic approach is the most efficient,” he said, without mentioning sanctions directly.

The head of the International Atomic Energy Agency, Yukiya Amano said the agency still has questions about Iran’s ambitions on nuclear power, and dialogue should take place.

The IAEA head made the comments while visiting nuclear reactors in Argentina on Thursday after meeting with the country’s Foreign Minister Jorge Taiana and President Cristina Fernandez.

He was there to discuss a joint plan from Brazil and Argentina to provide Iran with fuel. Iran said it’s prepared to take fuel in exchange for low-enriched uranium if it can’t buy it on the market.

But the US and its allies fear Iran will develop atomic weapons at the same time. At a previous meeting in Brazil, the IAEA was asked to negotiate with Iran before considering more sanctions over its nuclear program.