No
For iphoto to work it must have the original (in your case the RAW)
If that is not what you want then you should not shoot RAW - or you should not use iPhoto (or maybe both)
And if you think that haveing them backedup on Time Machine is an archive you are in for a nasty surprise - Time Machine is a backup system which keeps a limited amount of historical data (amount is detern=mined by available disk space) and then delete the oldest data - it is not an archive system
There are progrtams out there that claim to be able to do this - DO NOT USE THEM if you care about your photos - there is no way to do what you want if you use iPhoto
You can run iPhoto with th elibrary on an extrnal hard drive --
Moving the iPhoto library is safe and simple - quit iPhoto and drag the iPhoto library intact as a single entity to the external drive - depress the option key and launch iPhoto using the "select library" option to point to the new location on the external drive - fully test it and then trash the old library on the internal drive (test one more time prior to emptying the trash)
And be sure that the External drive is formatted Mac OS extended (journaled) (iPhoto does not work with drives with other formats) and that it is always available prior to launching iPhoto
And backup soon and often - having your iPhoto library on an external drive is not a backup and if you are using Time Machine you need to check and be sure that TM is backing up your external drive
You can also keep a smaller version of the library on your internal drive and use iPhoto Library Manager - http://www.fatcatsoftware.com/iplm/ - to move photos between the two libraries
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