by Prashant Rao

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LONDON, April 4, 2007 (AFP) - Britain was waiting for Iran's response on Wednesday to its proposal for direct bilateral discussions over the 15 naval personnel detained by Tehran, following revelations the two countries had "further contacts."

British Prime Minister Tony Blair's Downing Street office said Tuesday night that the two countries shared a desire to resolve the impasse, just hours after Foreign Secretary Margaret Beckett cautioned against hope of a "swift resolution" to the stand-off.

"There have been further contacts between the United Kingdom and Iran this evening (Tuesday), including directly with Dr Ali Larijani," Downing Street said in a statement, referring to Iran's top national security official.

Larijani has said he is in favour of a negotiated solution, and other senior officials in Tehran appeared to be taking a more conciliatory tone over the eight Royal Navy sailors and seven marines seized in the northern Gulf on March 23, accused of trespassing in Iranian waters.

Britain insists they were in Iraqi waters.

"On the basis of these (contacts), the prime minister believes that both sides share a desire for an early resolution of this issue through direct talks. The prime minister remains committed to resolving this by diplomatic means," the Downing Street statement continued.

It also said that Britain has proposed "direct bilateral discussions and awaits an Iranian response on when these can begin."

The British foreign ministry confirmed to AFP that the Iranian ambassador Rasoul Movahedian met with Foreign Office minister Lord David Triesman on Tuesday evening, the eighth meeting between the pair in 10 days.

Beckett earlier told reporters: "I would urge you to be cautious in assuming that we are likely to see a swift resolution to this issue."

The US Navy meanwhile said it had stepped up vigilance following the detention of the sailors.

Blair had said Tuesday that the stand-off faced a "critical" 48 hours, warning that he may be forced to take "tougher decisions" if the naval personnel are not freed.

Iran seemed increasingly open to negotiations over the issue, with Vice President Parviz Davoudi saying: "London has changed its attitude for several days now and is acting on the basis of negotiations."

Speaking in the southern city of Bushehr, where he was opening a new installation of Iran's first nuclear power station, he warned that "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."

The Roman Catholic bishop of Britain's armed forces issued a plea from "one religious leader to another", calling on Iran's supreme leader Ayatollah Ali Khamenei to help free the 15.

Khamenei "has the unique opportunity to gain the world's respect for its (Iran's) Islamic laws and values," Bishop Tom Burns said in a statement.

New still images were released on Tuesday of the detained sailors and marines, showing them "relaxing" in tracksuits and playing chess, a change from the previous string of video "confessions."

"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," the semi-official Fars news agency said.

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.

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.

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