Iran will respond in mid-August to the Western incentives for a cutback of its nuclear program, President Mahmoud Ahmadinejad said Wednesday.

"We are studying the proposals. Hopefully, we will present our views about the package by mid-August," Ahmadinejad told a crowd in western Iran in a speech broadcast live on state television.

CountryWatch: Iran

A package of incentives presented by the European Union's foreign policy chief, Javier Solana, on June 6 seeks to persuade Tehran to impose a long-term moratorium on uranium enrichment, a process that can produce fuel for nuclear generators or material for atomic bombs.

U.S. President George W. Bush warned Monday that if Iran rejects the package, it will face U.N. Security Council action and progressively stronger political and economic sanctions.

Iran's ruling hierarchy is divided over how to respond. While some leading figures have called for an outright rejection, others have said parts of the package are acceptable but certain points should be changed.