A former Egyptian diplomat who has headed the watchdog International Atomic Energy Agency since 1997, ElBaradei was appointed by acclamation and immediately sworn in at an IAEA general conference in Vienna of the agency's 138 member states.

The agency's 35-nation board of governors had in June unanimously nominated him to continue as its head after Washington dropped its opposition.

ElBaradei, who has led investigations into both Iraq's and Iran's nuclear programs, told the conference, which began Monday and is to end Friday, that "independence and impartiality will continue to guide my work."

He said that "security and development issues are closely linked" and that "all of the challenges we face can only be overcome through a collective approach."

Washington had resisted a new mandate for ElBaradei, saying two terms was enough for running an international agency, but received no backing from other members of the board.

Diplomats said ElBaradei had provoked Washington's ire for questioning US intelligence that Saddam Hussein's regime in Iraq had weapons of mass destruction, and for not being tough enough on Iran, which Washington accuses of secretly developing nuclear weapons.

ElBaradei, 63, has said the "jury is still out" on Iran's intentions, even though IAEA inspectors have discovered that the Islamic republic hid sensitive atomic work for almost two decades until the agency's inspection of its program began in 2003.

Final approval of the director general was up to the general conference, which endorses decisions made by the board of governors, the IAEA's executive arm.

ElBaradei told an IAEA board meeting on Saturday that there was still room for diplomacy on Iran, despite the board adopting a resolution that could lead to Tehran being taken to the UN Security Council.

Iran was found to be in non-compliance with the nuclear Non-Proliferation Treaty (NPT), which the IAEA supervises.

The Security Council can impose penalties, including sanctions, but it is not expected to be asked to deliberate before November, when an IAEA board meeting is to hear a report on Iran from ElBaradei.

In his opening speech, ElBaradei also spoke about energy problems, saying it was clear that nuclear energy was regaining stature as a serious option.

Promoting the peaceful use of nuclear energy is one of the main missions of the IAEA.

Greenpeace demonstrators outside the conference hall blasted the IAEA for "promoting nuclear power and thereby aiding the spread of nuclear weapons," according to a statement given to the press.

"Nuclear power is not only dirty, dangerous and economically insance, it also generates the very materials that can be used for nuclear bombs," Jan Vande Putte, Greenpeace's international energy expert, said.

Some 20 Greenpeace activites unrolled a 60-metre (yard) long banner outside the conference hall linking the agency to nuclear weaponry. They tried to meet with ElBaradei but were turned away.

Greenpeace also "calls on the world's governments to engage in a diplomatic process in the Middle East, instead of escalating the confrontation with Iran."

Acting on behalf of the Arab states, Oman distributed a document at the opening of the conference on "Israeli nuclear capabilities and threat."

An explanatory memorandum from the Arab League said that "the policies of the present Israeli government have obstructed the peace process in the Middle East and all initiatives to free the region of the Middle East of weapons of mass destruction, and in particular of nuclear weapons, have failed."

Israel, which is believed to have some 200 atom bombs, has not signed the NPT and so is not subject to IAEA safeguards verifications, although it is a member of the agency.

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