West defeats Iran initiative at major U.N. nuclear meeting

* Iran, Egypt wanted language on nuclear disarmament

* Recognised nuclear weapon states, others opposed this

* Debate highlighted divisions on key IAEA activity

VIENNA, Sept 22 (Reuters) - Western states defeated an

Iranian proposal at the U.N. nuclear agency's annual assembly on

Saturday to amend their draft resolution on a policy area

central to its work in preventing the spread of atom bombs.

The draft text was adopted in a vote shortly after midnight

after days of closed-door negotiations failed to achieve the

traditional consensus, with divisions between a small number of

countries led by Iran and a much larger Western-dominated group.

Diplomats said Iran and Egypt had wanted to include language

in the resolution suggesting the U.N. agency should have a role

also in nuclear disarmament, apparently reflecting frustration

on their part at the lack of faster progress on this issue.

This was opposed by a large majority including the United

States, Britain, France and Russia - four officially recognised

nuclear weapon states - which believe the International Atomic

Energy Agency (IAEA) is not the right forum for this, they said.

The West accuses Iran of trying to develop a nuclear weapons

capability in secret. The Islamic Republic denies the charge.

Tehran often hits out at the United States over its atomic

arsenal, and also criticises Iran's arch foe, Israel, and that

country's assumed nuclear weapons.

The annual General Conference of the 155 IAEA member states

traditionally adopts several resolutions, setting out general

and often vaguely worded policy aspirations and guidelines,

during a week-long meeting in Vienna.

As in 2011, the most contentious issue was a text regarding

the IAEA's activities in seeking to make sure nuclear material

is not diverted for non-peaceful purposes, a crucial task for

the U.N. agency under the Non-Proliferation Treaty (NPT).

Last year, the gathering failed to agree the resolution on

"strengthening the effectiveness and improving the efficiency of

the safeguards system" submitted by some 30 Western states.

Safeguards refer to measures undertaken by U.N. inspectors

to discover any attempt by non-nuclear weapons states to use

atomic technology or material for developing weapons - for

example regular visits and camera surveillance of sites.

This year, Iran said a paragraph saying IAEA "safeguards are

a fundamental component of nuclear non-proliferation" should be

amended to add "and nuclear disarmament." This was rejected by

55 votes against and nine for. The resolution then passed by 89

for, no vote against and 16 abstentions, including Iran.

Several countries, including South Africa and Brazil,

stressed their support for nuclear disarmament even though they

voted against the Iranian proposal.

Under the NPT, a 1970 pact, the five recognised atomic bomb

"haves" agreed to work toward eliminating their nuclear weapons,

and the "have-nots" pledged not to pursue them.

Critics say there has been more emphasis on meeting the

non-proliferation goal than getting the five major powers - the

United States, China, Russia, France and Britain - to fulfil

their part of the deal.