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QUESTION: Thank you. This is a question for both of you. What would you like to see in terms of sanctions against Iran, both at the United Nations level and at the European Union level? Please be as specific as possible.

SECRETARY RICE: Well, perhaps I can talk about the United Nations Security Council and the Minister can speak to the European Union issue. I think it's first important to note that we have set out a diplomatic path that includes negotiation as the preferred means by which to resolve this issue. And as a result, the European 3+3 have offered on a number of occasions to Iran, incentives, possibilities for progress, with us in a very, very good package of initiatives that Iran could take up if it wished to stop its enrichment and reprocessing activities. But we also have a UN Security Council track, and we have passed two resolutions in that track, Chapter 7 resolutions, unanimously.

We will seek further resolutions in the UN Security Council should Iran not take up the negotiating track. We have explored and have used various freezes on assets of individuals. We have used visa bans. I think that there are any number of ways that we can expand those efforts. It is just very important that those who are engaged for Iran in the proliferation activities not be allowed to do so.

Now I would note, too, that there are any number of measures that are being taken in the private sector, simply because of the reputational and investment risk of dealing with Iran. A number of financial institutions have pulled out of Iran. The export credits of a number of countries are being diminished because when a country is under a Chapter 7 resolution, there are reputational and investment risks. And so I think we will continue to pursue that path as well.

Do you want us just to (inaudible)?

FOREIGN MINISTER KOUCHNER: Yes. So there are three paths. There is the traditional, diplomatic path which we are following with contacts that are maintained and discussions that are underway. As far as the EU, of course, it's Javier Solana who is charge of this process. But there are many foreign affairs ministers who are talking with the Iranians, (inaudible), in particular. We are continuing to follow this path. And as Condi said, there is the path that goes through the Security Council of the United Nations. And we may hope that there will be a third resolution to reinforce the sanctions which, up until now, have not been very effective.

And then there is what Mr. ElBaradei is technically pursuing and which I personally find quite interesting. But on the other hand, some countries and within the EU and indeed, there was a meeting of the political directors this morning. This path is also being pursued, followed, (inaudible) specific sanctions which would go towards the banking system, the industrial system of Iran and we would be ready to implement them. And France (inaudible) has already recommended to some of its large companies to refrain from taking part in bids and calls for tenders.

And as far as investments in Iran are concerned, we have studied in this regard, while these investments have reduced. So there is paths: negotiations, Mr. ElBaradei's technical path, another resolution of the Security Council which does not preclude and, quite the contrary, given the fact that the results were not positive and the fact that uranium reprocessing enriching has not stopped. And in the meantime in parallel, we are thinking and we are working on specific sanctions.

QUESTION: Madame Secretary, your counterpart yesterday told us that basically the approach that the U.S. is taking on Iran is a bit abrupt, that's the word used. I wanted you to comment on that. And also you've outlived already three foreign minister -- French foreign ministers. Do you see any area -- do you see a new area or a warming up in the relationship between Paris and Washington?

SECRETARY RICE: That may simply mean that I've been here too long. So -- (laughter) -- as to U.S. policy toward Iran, I would just remind -- and by the way, Bernard and I see this issue very much the same. I think that there is essentially no difference in the way that we see the situation in Iran and what the international community must do. And we are going to work toward that end. I would remind everyone that the United States made a very major offer in May of 2006 to reverse 27 years of American policy and to talk to Iran, despite the fact that we have no diplomatic relations in the context of the EU-3+3 negotiations, if Iran would do simply one thing: suspend its enrichment and reprocessing activities. This was not an American demand; this had been a part of the record with Iran since the Paris Accords. It was a part of IAEA Board of Governors resolutions.

I think we've been very patient in keeping on the table this offer to reverse American policy of 27 years. And we have said that it doesn't even have to be limited to issues of the nuclear (inaudible). We can talk about whatever the Iranians wish to talk about. So I think the question isn't why won't the United States talk to Iran; it's why won't Tehran talk to the United States. And if Iran is refusing to do so, it must mean that they are insisting on Brazilian enrichment and reprocessing because they want to get the technology that can lead to a nuclear weapon.

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