Iran: We've developed new model of nuclear centrifuges

Iran has built a new generation of centrifuges for enriching uranium and is testing them, the official news agency IRNA quoted its nuclear energy agency chief as saying on Tuesday.

"Iranian scientists have made a new generation of centrifuges that are currently undergoing necessary tests," Ali Akbar Salehi told a Tehran news conference as reported by IRNA.

"Chains of 10 centrifuges are now under test," he said, and the number in each chain "will be gradually increased."

Salehi did not say when the new model of centrifuge would be introduced to the production line in its Natanz enrichment plant but said it was stronger and faster than those now in operation.

Iran says it is enriching uranium only to low levels suitable for electricity generation and is committed to non-proliferation safeguards maintained by inspectors from the International Atomic Energy Agency.

Citing intelligence reports, the West suspects Iran has secretly researched how to fuel atom bombs with highly enriched uranium. Iran has denied this and said the intelligence, unverified but deemed credible by the IAEA, was fabricated.

A senior diplomat close to the IAEA said there appeared to be little new in Salehi's announcement. The IAEA has reported Iran testing advanced models of centrifuges for more than two years but found no sign of them being phased into production lines.

Ahmadinejad: Iran will cut off the hands of any who dare attack

Also on Tuesday, Iranian President Mahmoud Ahmadinejad told a military parade in Tehran that Iran would "cut off the hands" of anyone who attacked the country.

"Iranian armed forces will cut off the hands of any attackers before they pull the trigger," he said in an address at a parade broadcast on state television to mark the start of the Iran-Iraq war in September 1980.

Hundreds of troops marched past the official podium packed with top officials, followed by military hardware including Ghadr, Sejil and Shahab-3 long-range missiles which are made in Iran.

Television commentators said the Shahab-3 missile had a range of 2,000 km, putting Israel within striking distance.

Shorter range missiles, unmanned planes and locally made jet fighters - Saegheh and Azarkhsh, artillery and rockets were also on display.

Trucks drove past bearing slogans reading "Down with Israel" and "Down with USA". Iran has always played down any threats of possible U.S. or Israeli attacks on Iran and says it is well-prepared to respond if any such strike was made.

"No power in the world is daring enough to attack Iran as we are more experienced and powerful than ever," Ahmadinejad said at the parade.

The United States and its allies are seeking to intensify UN sanctions on Iran over the Islamic country's disputed nuclear program, which the West fears is intended to build nuclear weapons. Iran has repeatedly denied this.

Iran has repeatedly condemned the military presence of the U.S. and its allies in neighboring countries. "The roots of all conflicts in the region is the presence of foreign troops," Ahmadinejad said.

After Ahmadinejad spoke, a military plane that flew over the parade crashed on the outskirts of Tehran. There were no reports of injuries.

Washington and Israel do not rule out military action against Iran over the nuclear issue.

Defense Minister Ehud Barak told his American counterpart Robert Gates during a visit to Washington on Monday that Israel would not take any option regarding Iran off the table, and urged Washington to set a time limit on its diplomatic efforts.

Israel means what it says when it comes to Iran's contentious nuclear program, Barak told Gates.

Israel's deputy foreign minister earlier Monday made similar comments regarding Iran, saying Israel has not given up the option of a military response to Tehran's nuclear program.

Danny Ayalon's remarks came after Russia's president said his Israeli counterpart had assured him the country would not attack Iran.

Tehran will hold talks on October 1 with major powers worried about the Islamic Republic's nuclear strategy.