By Katharine Jackson and Gram Slattery
WASHINGTON, June 17 (Reuters) - Both Iran and the U.S. can walk away from the memorandum of understanding they are set to sign on Friday, and upcoming talks are likely to focus on the precise sequencing of the steps previewed in the preliminary accord, a senior U.S. official told reporters on Wednesday.
Speaking on condition of anonymity, the official read out the 14-point memorandum that is due to be formally signed in Switzerland. They said upcoming meetings there will be "critical" for ensuring that the memorandum of understanding can evolve into a comprehensive agreement.
"I think the meeting in Switzerland will be quite critical in order to really see how we get to the next phase," a senior U.S. official said.
"It has to be a situation where both parties... agree on the full magnitude of what both parties are going to do, and then come up with a sequencing agreement on who's going to do what when, and that's really where the crux of the negotiations will go."
The document, as read out by the official, was similar to the 14-point memorandum that various media outlets, including Reuters, had already reported on earlier in the day.
Under the terms of the MoU, an extendable 60-day negotiation period will begin upon the signing of the preliminary accord.
Iran will allow toll-free passage through the Strait of Hormuz for 60 days, and the Islamic Republic will later discuss the strait's administration with Oman and other Gulf powers.
One senior official said as part of the MoU, Iran had agreed - at a minimum - to the "downblending" of the highly enriched uranium in its possession.
The officials said that Israeli Prime Minister Benjamin Netanyahu, who had previously said he had not seen the formal MoU, had not asked for a copy to their knowledge.
(Reporting by Katharine Jackson and Gram Slattery; Editing by Michelle Nichols and Bill Berkrot)
