. . .

QUESTION: Iran seems to be questioning the U.S. Administration's engagement policy. They say that the Administration has a superficial, conciliatory tone. And today, the supreme leader said that every time they have a smile on their face - and this is in quote - they are hiding a dagger behind their back. Any reaction?

QUESTION: (Inaudible.)

MR. KELLY: That was from the peanut gallery here, not from the podium.

Look, we have - not just we, but the IAEA and Russia and France has on the table a very good proposal that will help Iran become better integrated in the international community, will be the first step towards ending its isolation. This is a very specific proposal that the Iranian delegation in Vienna already accepted in principle. I think it behooves us all to concentrate on this very concrete example of a way that we can move forward.

And this, as I say, is a way for them to end their isolation and begin to cooperate with the international community. And we would urge Iran to accept the proposal as it's laid out by the director general of the IAEA, Dr. ElBaradei. And they've already agreed to this proposal in principle, so let's - we think that we should focus on this first.

QUESTION: Where do things stand on the new round of talks?

MR. KELLY: The P-5+1, you mean? Well, that's being worked out by Mr. Solana, and we - there's been no agreement to have a P-5+1 meeting.

QUESTION: Well, actually, there was an agreement to have a meeting, but you just haven't set the date? Or --

MR. KELLY: Right.

QUESTION: -- now you don't know if you are even going to meet?

MR. KELLY: The - well, the - yes, that's right, Elise. We have not --

QUESTION: Weren't you supposed to have one by the end of the month?

MR. KELLY: We've not agreed to a date as - a date or an agenda.

QUESTION: Why not? Is it because you can't agree on the agenda, or you can't agree on the date?

MR. KELLY: It's - this is really - it's being worked out by Javier Solana, and I just would refer you to the EU.

QUESTION: Well, but I mean, you're not an innocent bystander.

MR. KELLY: No, we're not. I mean, Javier Solana is in close consultation with us and he's in close consultations with the other members of the P-5+1.

QUESTION: Well, I'm just trying to determine whether - I mean, you said you were going to have a meeting by the end of the month.

MR. KELLY: Right. That didn't happen.

QUESTION: And that didn't happen.

MR. KELLY: Right.

QUESTION: So, I mean, is this that - have the parties kind of - has - Iran doesn't want to meet anymore, or what --

MR. KELLY: Again, I --

QUESTION: What's the holdup?

MR. KELLY: Yeah. I really have to refer you to the EU. They're the ones taking the lead on talking to Iran. They consult with us and keep us up to date on what they're hearing from the Iranian side. But it's - you really have to ask that of Javier Solana.

QUESTION: Is Solana actually making an attempt to --

MR. KELLY: Yes.

QUESTION: Or is he waiting on --

MR. KELLY: No, he's quite engaged in this and talking to the Iranians on it.

QUESTION: Thank you.

MR. KELLY: Thank you.

...