Standard Individual Export Licenses (SIELs) issued for Iran were worth only pnd 3 million (dlr 5.4m) in the six months up until the end of June compared to pnd 545 million for the whole of 2003.

The fall comes in the wake of the British government's issuance of 179 licensed sales to Iran last year, more than twice the number in 2002, when the value was boosted by the approval of dual-use inspection tools on civilian aviation engines.

The latest figures for the second quarter of 2004 show that the licenses covered 7 items on the UK's so-called Military List and 23 other items. They add to 3 items on the Military list and 7 other items issued in the first quarter.

In addition, three Open Individual Export Licenses, covering armored vehicles and components for both military and civil aero engines, were issued or amended during the first half of this year but which include no given value.

Of the 17 refusals in issuing SIELs in the six months up until June, which also had no given value, two were on the Military List and 15 were for other items.

The refusals so far this year represent a rise to 21 percent of applications for Iran compared with the 13 percent that were rejected in 2003.

The fall in approved strategic sales comes as Britain's total exports to Iran in the first half of 2004 fell back to pnd 449m from pnd 434m in the same period last year.

According to Eurostat figures, the UK has been pushed back into fourth place for the first time in the league table of EU suppliers to Iran, losing its third spot to Sweden, which recorded a 37 percent increase in sales to Iran so far this year.