SENATOR CHAFEE: And with Iran? Is there any potential for finding common ground with Iran?

MS. RICE: Well, I think the problems with Iran are well known. And we've tried to make them known to the Iranian government, often through third parties, sometimes when we've been in fora together.

This is just a regime that has a really very different view of the Middle East and where the world is going than we do. It's really hard to find common ground with a government that thinks Israel should be extinguished. It's difficult to find common ground with a government that is supporting Hezbollah and terrorist organizations that are determined to undermine the Middle East peace that we seek.

So I would hope that the nuclear issues will be resolved. It's extremely important to the world that Iran not acquire a nuclear weapon. And we are working closely with the European Union on that. I would hope that the Iranian government does something to make clear to the world that they're not going to support terrorists who are determined to undermine the two-state solution in the Palestinian - in the Holy Land.

And those are barriers to relations, and we just have to be honest about it. It's a very different view, not to mention, by the way, that a theocratic government that has a view that the mullahs ought to rule; that has no rights - or it has a human rights record that is really appalling and that treats its citizens, its women, in that way, is not a regime with which I think we have very much common ground, particularly given the way that we would like to see the Middle East develop.

. . .

SENATOR CHAFEE: And interestingly on Iran, I went to a conference in Bahrain earlier in December and the Iranians were there. And I looked up out of curiosity, who are these delegates from Iran. And each of the three delegates from Iran had been educated in the United States; one at the University of Houston, one at the University of Cincinnati, and one at Michigan State. And I wasn't surprised. There is common ground. But given every opportunity to express even the slightest finding of that common ground, I find that you instead fall into accentuating and magnifying our differences.

MS. RICE: Well, Senator, let me just make the following point. You know, when the Forum for the Future was held, the very important meeting that was held to talk about reform in the Middle East, the Iranians were actually invited. The Moroccans wanted to invite them; we said we had no objection. And they didn't come. And I think there's a reason they didn't come, which was that that was a gathering of civil society and business leaders and people, people in the country who wanted to talk about reform. That's an opportunity for Iran to interact with the world.

We showed, I think, our respect for and our humanitarian impulse to the Iranian people with our response to the Bam earthquake, and it was a very great moment in American - in the history of American compassion and generosity. And I hope we'll have other opportunities that are not linked to disaster to let the Iranian people know that we have no desire to isolate them from the international system or from others.

And so I understand your question. It's a complex problem when you're dealing with a regime that really has views that we consider illegitimate. But from the point of view of the Iranian people, this is a people who should be in contact with the rest of the world.

. . .

SENATOR BIDEN: I'm going to vote for you, but I'm telling you, I - because of the standard I have about the president having intelligent, bright people, if they're honorable and you - all of those things, he gets to choose who he wants - but I left the hearing yesterday and got on the train somewhat perplexed. And I'll end with this. It's like the issue I asked you about Iran. If in fact the Lord Almighty came down and said, look, we guarantee we can monitor whether they're keeping the commitment, no nukes, no missiles, would we make a deal with them?

It doesn't mean we don't still fight about their support of Hezbollah, terror, human rights. And my impression from you, and maybe you can clarify it now, is you said no, we wouldn't make a deal if it were just those two things: no nukes, no missiles, period. Would we make a deal with them? That's my question. Would we? Or do we have to have it all settled all at once with them?

Thank you, Mr. Chairman.

MS. RICE: Senator, I'll be - I'll be brief. The question about Iran I think is a question of looking at the totality of the relationship. Obviously the pressing issue right now is to deal with Iran's nuclear program, and I think that we will see what becomes of the EU three efforts, we'll work with them. We will see what we can do in the IAEA. If the Iranians - if the -

SENATOR BIDEN: If they got that deal, would we sign it?

MS. RICE: If the Iranians are prepared to verifiably and irreversibly get rid of their nuclear program, then that will be a very good day and I think it would certainly change the circumstances that we are looking at.

SENATOR BIDEN: I wish we had a court reporter, could play back what you just said.

MS. RICE: But I really -

SENATOR BIDEN: What's the answer? Would you make a deal or not?

MS. RICE: The answer, Senator, is I'm not going to get into hypotheticals till I know what I'm looking at. That's the answer.

SENATOR BIDEN: Well, you're in a hypothetical with China. You make a lot of deals with China. Their human rights program is horrible.

MS. RICE: I understand -

SENATOR BIDEN: Their support of - is horrible. Their problems with us are serious. I mean, I don't get it. Why can't you just say, if that worked - wouldn't that be a nice message to send to the Iranians? "Hey, guarantee us no missiles, guarantee us no nukes, we can make a deal." That a good idea?

MS. RICE: Senator, what we have said to the Iranians is look at the Libyan example. The United States doesn't have permanent enemies.