On the radar: A return to talks; Durable solutions on Iran, less cost; Strait threats, missile tests and a fuel rod; Panetta on DoD budget strategy; DIY budget strategy; The Partnership; South reiterates offer to North; Russian sub catches fire; and Climb a cooling tower.

January 3, 2012 | Edited by Benjamin Loehrke and Mary Kaszynski

Iran signals a return to talks - Iran’s nuclear negotiator Saeed Jalili is quoted through Iran’s official news agency that Iran has “formally declared” its intent to return to nuclear talks with the US, Russia, China, Britain, France and Germany.

--”A spokesperson for EU foreign policy chief Catherine Ashton said she had not received any new communication from Iran,” reports AP. “We continue to pursue our twin-track approach and are open for meaningful discussions on confidence-building measures, without preconditions from the Iranian side,” said the spokesperson. http://owl.li/8gIjq

Non-military solutions - Talk of using military action against Iran is resurfacing in some conservative circles. Such military threats, if acted upon, bring unforeseen consequences that complicate achieving America’s main objectives, write Ambassadors William Luers and Thomas Pickering in The Washington Post. “Deploying diplomats with a strategy while maintaining some pressure on Iran will lower Tehran’s urgency to build a bomb and reduce the danger of conflict.”

--”The slow, elusive diplomatic process to achieve U.S. objectives does not provide the sound-bite satisfaction of military threats or action. Multiple, creative efforts to engage Iran’s leaders and provide a dignified exit from the corner in which the world community has placed them could achieve more durable solutions at a far lower cost. It is a lesson that those urging military action against Iran have failed to learn,” note Luers and Pickering. http://owl.li/8gIfh

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Mixed signals - While signalling its intent to return to talks, Iran also test-fired a new radar-evading medium-range missile and announced the successful production of its own nuclear fuel rods. http://owl.li/8gMT8

Iran and the Strait- “The Obama administration is right to signal, in deliberately moderated ways, that Washington will not back off if Tehran ever attempts to [carry out its threat to shut the Strait of Hormuz]” says The New York Times in an editorial.

--Recommendations: for the administration, prevent the tough new sanctions from alienating allies by using the national security waiver. For the U.S. and EU, work with China and Russia to enact UN sanctions. http://owl.li/8gIqL

Defense Cuts - Secretary Panetta is set to reveal his strategy that will guide the Pentagon as it seeks between $450 billion and $1 trillion in budget savings. “Pentagon officials, in the meantime, are in final deliberations about potential cuts to virtually every important area of military spending: the nuclear arsenal, warships, combat aircraft, salaries, and retirement and health benefits,” reports The New York Times. http://owl.li/8gIuj

-- You too can cut the Pentagon’s budget by using the Times’ interactive DoD budget strategy. Nuclear options: cancelling the next generation bomber ($38 billion), curtail national missile defense programs ($30 billion), or terminate MEADS and PTSS ($13 billion). http://owl.li/8gIx2

Tweet - @Cirincione: “How I cut $487.5 billion in defense spending http://owl.li/8gNfV via @nytgraphics”

Book launch - CNAS hosts the launch of Philip Taubman’s new book The Partnership: Five Cold Warriors and Their Quest to Ban the Bomb. The book tells the story of Henry Kissinger, George Shultz, Sam Nunn, William Perry, and Sidney Drell and their efforts “to reduce the threat of a nuclear attack and, ultimately, eliminate nuclear weapons altogether.” The event features a discussion between the author and The New York Times’ David Sanger, followed by a cocktail reception and book signing.

--Details: Wed. Jan. 4 from 5:30 - 8:30 @ the W Hotel in DC. RSVP here. Read the NYT book review here.

South Korea offer - “South Korean President Lee Myung-bak called on North Korea's new leader to seize the opportunity and return to dialogue, saying he was prepared to offer help to revive the North's shattered economy if it suspends nuclear activities.” Reuters reports. http://owl.li/8gJap

Fire on Russian sub - Last week, a fire broke out on board a Russian nuclear submarine in port. The reactors had been shut down and the weapons had been removed, but the submarine had to be doused with water and partially submerged to bring the blaze under control. Reuters has the story. http://owl.li/8gMLT

Nuclear amusement - What can a country do with an unfinished and unused nuclear plant? Turn it into an amusement park. Wunderland Kalkar in Dusseldorf features four restaurants, eight bars, and six hotels near a canceled SNR-300 nuclear plant. Highlights for the amusement park: a giant swing and climbing wall on the cooling tower. http://owl.li/8gMOr