The report on the quality of intelligence on nuclear proliferation around the world that Bush ordered last year was also critical of US intelligence gathered on North Korea, but the data on Iran was described as especially worrisome and "scandalous" by people briefed on the panel's work.

A classified version of the panel's report will be given to Bush by March 31, while an unclassified version which may or may not included the criticism of intelligence on Iran will be made public at about the same time, the daily said.

The newspaper's account of the assessment comes as the Bush administration on Tuesday called on the international community to consider possible actions against Iran following its reluctance in talks with the European Union to drop its sensitive nuclear activities.

Britain, France and Germany are trying to convince Iran to halt its work on the nuclear fuel cycle -- including the sensitive process of enriching uranium -- in return for a package of incentives covering trade, security and technology.

The United States maintains that Iran is trying to covertly develop nuclear weapons, while Tehran insists that its programme is purely meant to meet civilian energy needs.

People briefed on the bipartisan presidential panel could not be more specific in describing the inadequacies of US intelligence on Iran, but former US experts on the country said that despite the enormous resources devoted to Iran since the Islamic revolution of 1979, US intelligence agencies have had little success in human spying necessary to understand Iranian decision-making.

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