EXCLUSIVE-Iran eases demands in Vienna nuclear talks - Western diplomats

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(adds dropped word in headline) * Tehran signals can accept fewer centrifuges - diplomats * Iranian official says demand for 50,000 machines stands * Iran should have a "fraction" of current centrifuges -U.S. * Breakthrough deal by July 20 deadline remains unlikely By Louis Charbonneau and Parisa Hafezi VIENNA, July 3 (Reuters) - Iran has reduced demands for the size of its future nuclear enrichment programme in talks with world powers although Western governments are urging Tehran to compromise further, Western diplomats said on Thursday. The diplomats, who spoke to Reuters at the start of a two- week round of negotiations between Iran and the United States, Britain, France, Germany, Russia and China, said it would still be hard to clinch a deal by the self-imposed July 20 deadline.

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