Ali Larijani called the UN Security Council resolution issued last week “illegal” and said Iran won’t respect the deadline. “We reject this resolution,” he told reporters.

“We will expand nuclear activities where required. It includes all nuclear technology including the string of centrifuges,” Larijani said, referring to the centrifuges Iran uses to enrich uranium.

He said Iran had not violated any of its obligations under the Nuclear Non Proliferation treaty, and that the UN had no right to require it suspend enrichment.

“We won’t accept suspension,” he said.

“Such resolutions won’t have any impact on our behavior. We will expand our nuclear technology,” he added.

However, Larijani said all Iranian nuclear activities would remain under the supervision of the UN nuclear watchdog, the International Atomic Energy Agency.

Larijani said the Security Council resolution was “contrary” to a package of Western incentives offered in June to persuade Tehran to suspend its uranium enrichment activities.

He confirmed that Iran would formally respond on Aug. 22 to the incentives package.

Iran has said it will never give up its right to produce nuclear fuel, but has indicated it may temporarily suspend large-scale activities to ease tensions with the West.

Larijani said the world should blame the US and its allies for acting against their proposed package and seeking to deny Iran of its legitimate right under the NPT to enrich uranium and produce nuclear fuel.

Larijani said talks, not threats, would resolve the standoff over Iran’s nuclear activities, and blamed the West for compromising a diplomatic solution.

“We were expected to hold talks ... to remove ambiguities ... but they issued a resolution (at the UN Security Council) and killed it (talks). They should explain why they damaged the path of dialogue,” he said.

“If they have any concern, they should raise it during the talks even if their demand is suspension. If anybody has any ambiguity, we are ready to address it in talks,” he said.

The United States has accuses Iran of seeking nuclear weapons. Teheran maintains its program is peaceful and aims at generating electricity, not bombs.

In February, Iran for the first time produced a batch of low-enriched uranium, using a cascade of 164 centrifuges. The process of uranium enrichment can be used to generate electricity or to create an atomic weapon, depending on the level of enrichment.

Iran said it plans to install 3,000 centrifuges at its enrichment plant in Natanz, central Iran, by the last quarter of 2006. Industrial production of enriched uranium in Natanz would require 54,000 centrifuges.

Hard-liners within Iran’s ruling Islamic establishment have called on the government to withdraw from the NPT in response to the UN resolution, but Larijani said Iran won’t pull out of the treaty.

Withdrawal from the NPT could end all international oversight of Iran’s nuclear program.

The IAEA routinely inspects Iran’s nuclear facilities and has said there was no evidence proving that Iran’s nuclear program has diverted toward weapons.