Hopes rise as Blair says Iran crisis in 'critical' phase

LONDON (AFP) - Prime Minister Tony Blair said Tuesday that the standoff with Iran over 15 captive sailors faced a "critical" 48 hours, after a top Tehran official said new contacts could help end the crisis.

But Blair also warned that he may be forced to take "tougher decisions" if the naval personnel are not freed, while Iran's vice-president reiterated that London must admit they were in Iranian territorial waters when seized.

"The next 48 hours will be fairly critical," Blair told Glasgow-based Real Radio, while cautiously welcoming comments Monday by top Iranian national security official Ali Larijani, who favoured a diplomatic solution.

"That seems to offer some prospect but the most important thing is to get these people back," Blair said.

In Tehran, senior officials appeared to be taking a more conciliatory tone over the 14 men and one woman who were seized in the northern Gulf on March 23, accused of trespassing in Iranian waters. Britain insists they were in Iraqi waters.

"London has changed its attitude for several days now and is acting on the basis of negotiations," Vice President Parviz Davoudi said in the southern city of Bushehr where he was opening a new installation at Iran's first nuclear power station.

But he warned: "London must give guarantees and say that there was a violation and there will be no other errors in the future. I think that the problem is heading in this direction and God willing will be resolved soon."

Blair cautioned that London was ready to keep the pressure on Tehran if the eight sailors and seven marines are not released.

He said the situation could evolve through "peaceful, calm negotiation," or London could otherwise take "increasingly tougher decisions."

Blair did not repeat the comments later, preferring to say there were no new developments but adding that the next few days would be "vital."

Meanwhile new still images were released of the eight sailors and seven marines, showing them "relaxing" in tracksuits and playing chess, a change from the previous string of video "confessions."

"These latest pictures show their ideal conditions. They are having fun, relaxing and enjoying food and coffee," the semi-official Fars news agency said.

"It looks like these sailors are happy with spending time in good conditions under the Iranians' Islamic kindness instead of operating in the hard conditions of the Persian Gulf," it added.

But the mother of Royal Navy Lieutenant Felix Carman, 26, one of the captives, told of her distress at seeing him featured in one of the video "confessions."

"It was a shock to see him on television but we were glad to see he looked fit and well," she told the South Wales Evening Post regional newspaper.

Iran's Larijani earlier said new talks had begun with Britain on resolving the crisis.

"It is at the beginning of the path. If they continue on this path then logically conditions can change and we can go towards ending this issue," he told state television's central news agency.

In Washington, US President George W. Bush insisted there should be no "quid pro quos" with Iran, when asked if five Iranians held since January by US forces in Iraq on suspicion of aiding insurgents should be freed to favour a possible release of the Britons.

But Iraq reiterated that it was negotiating with the US embassy and the US military to secure the Iranians' release.

Foreign Minister Hoshyar Zebari told AFP: "We have been asking actually the Americans formally to release them for quite some time but still they have not been released."

Britain, which unlike its ally the United States has diplomatic relations with Iran, has kept up bilateral contacts throughout the crisis and ambassador Geoffrey Adams was to meet foreign ministry officials later Tuesday.

The crisis has come at a perilous time for Iran's relations with the West, with the United States refusing to rule out military action over the Iranian nuclear programme and the United Nations imposing tough new sanctions.

Blair said the ball was now in Iran's court.

"I'm not going to say any more at the moment -- it's for the Iranian government now to come back with their response," he said.