. . .

QUESTION: The Iranians have provided the IAEA with what the IAEA calls an initial response to the LEU offer.

MR. KELLY: Right.

QUESTION: What's your reaction? What's your take on the initial response?

MR. KELLY: Well, I think you've seen the press release out of ElBaradei's office that this is an initial response --

QUESTION: This is an initial response --

MR. KELLY: -- and we're waiting for a clarification. We - for our part, we remain united with our Russian and French partners in support of the IAEA draft agreement. We think it's a good agreement, and it's a very balanced agreement that represents a confidence-building step for all parties. It satisfies a legitimate humanitarian need from Iran and creates an opportunity for all of us for further progress.

QUESTION: So then it stands to reason that any change from that draft proposal that you just said you still supported would not be acceptable?

MR. KELLY: I didn't say that. We think, and France and Russia also think, that this is a good proposal. And we support it.

QUESTION: I understand that. I'm asking if any changes to that would be acceptable.

MR. KELLY: Well, you've seen what Mr. - or Dr. ElBaradei said, and we are in very close consultation with him that we need further clarification. And I think it's also fair to say that we need to have a formal response from Iran. At this point, we've been given some details of it, but we're still talking to the Iranians about it.

QUESTION: What about the --

MR. KELLY: Kirit.

QUESTION: -- specifics of the changes they're proposing, that this be done in stages? And (inaudible) what the other one is.

MR. KELLY: Well, Kirit, like I say, we're going - we're waiting to get this - an official formal response. There is complete unity among the three parties here - or the four parties - the U.S., France, Russia, and the IAEA, that this is a sound agreement. That it's balanced and answers the needs and concerns of all parties. And so we'll work with Dr. ElBarbadei and see what kind of clarifications we get from the Iranians.

QUESTION: Can I just follow? Ian, Turkish prime minister was in Iran to sign several agreements and calling that Iran also has a right to have a peaceful nuclear energy program. And there was several agreements signed between the two. He also is supposed to come to Washington, but the trip was postponed. Any reaction - if anything to do with this agreement with Iran between Turkey and Iran?

MR. KELLY: Well, Goyal, I don't have the details of that agreement. I mean, I will say what we've said all along: We don't dispute the right of Iran to a peaceful nuclear energy program. What Iran has to do, though, is respond to the very real and legitimate concerns about the international community about the nature of that program, and that we need to have more transparency and Iran needs to raise the level of confidence among the international community in the nature of their program. And this proposal from the IAEA is one good concrete way to address some of those concerns.

I don't have any information about the visit of Prime Minister Erdogan, however. I think - I just don't have any details on that right now.

QUESTION: So basically, finally, you support Iranian and Turkey's agreements?

MR. KELLY: This is a - it's a bilateral issue between the two countries. Our position and the position of the Iranian - position of the international community is clear that Iran has to do more to make their program more transparent.

QUESTION: Ian --

MR. KELLY: Yeah.

QUESTION: -- going back to the agreement, the Russians are supposed to be doing the reprocessing of the 3.5 percent uranium to 20 percent, and then the French are supposed to be doing the fuel rod fabrication. What is the role of the United States in this project?

MR. KELLY: Well, I mean, clearly, the United States has a lot of interests in Iran doing what we have been calling on Iran to do, which is make their nuclear energy program more transparent. And of course, we have played a role in the P-5+1 process. We stand ready to support this effort, this proposal of the IAEA to have this shipment - to have this LEU shipped out of Iran to be reprocessed.

QUESTION: So, basically, the U.S. won't be doing any technical - is not involved in any technical aspect of implementation of the whole fuel reprocessing?

MR. KELLY: Why don't I - yeah, well, that's a very technical question, and I think the answer to that is no, but let me see if we can get you a technical answer to a technical question.

. . .

QUESTION: Thanks very much. And I just wanted to go my question back to Turkey and Iran, if you can clarify please. I understand that you have been talking about sanctions against Iran or Iranian companies are dealing or doing business with them as far as helping Iranians. But now between these two countries, Iran - Iranian gas will flow through Turkey for billions of dollars. Do you support that?

MR. KELLY: Well, Goyal, you know what our approach is - a two-track approach. On the one hand, we're - we indicated a willingness to engage with Iran, to talk to Iran, try and come up with an approach that will meet the needs of the international community and will meet Iran's needs, humanitarian needs. And at the same time, we are also looking at what we call the pressure track, and that there are a number of options of what we have available to us under this pressure track. I think that we're pursuing the engagement track, but we are just keeping our options open, and I'm just not going to get into the details of what those options are.

Thanks.

QUESTION: Thank you, sir.