SECRETARY RICE: Good afternoon.

FOREIGN MINISTER KOUCHNER: Good afternoon.

SECRETARY RICE: I am very pleased to welcome to the State Department, to Washington and to the United States, my colleague and friend, the Foreign Minister of France, Bernard Kouchner. He was very kind to host me recently in Paris and that was a very fine visit. And he is, of course, on his way to the United Nations General Assembly and I will catch up with you there tomorrow, Bernard. But thank you very much for the excellent conversation that we've had. We've talked about a wide range of issues, spending a good deal of our time on issues concerning the Middle East.

We talked about my most recent trip to the Middle East as well as Bernard's recent trip there, and I think we found the parties very actively engaged in trying to make progress toward a two-state solution. We talked about Lebanon and in a moment the Foreign Minister will read a joint statement on Lebanon.

We had an extensive discussion of the situation in Iran and the need for Iran to adhere to the just demands of the international community to cease its enrichment program -- its reprocessing and enrichment program, and to adhere to the Security Council resolutions that have been passed. We've also talked about Kosovo, about Afghanistan and a number of other issues.

But as is befitting to good friends and good partners who are global partners, I think that our conversations have been not only wide-ranging but productive and I look forward to continuing with our colleagues in New York.

FOREIGN MINISTER KOUCHNER: Thank you. Thank you, Condi.

FOREIGN MINISTER KOUCHNER (Via interpreter.) Indeed, yes, we did approach all of these topics which were not all happy topics, and in particular I would like to read to you regarding Lebanon. We decided to issue a joint statement which I shall read to you.

"The United States and France condemn in the strongest possible terms the brutal murder of Antoine Ghanem. The two countries reaffirm that it is crucial for the presidential elections in Lebanon be held according to the Lebanese constitutional schedules and norms. The fact that the international community through a unanimous Security Council Resolution 1757, (inaudible) the international tribunal following the murder of the Prime Minister Hariri, demonstrate its determination not to let such crimes go unpunished.

What is at stake today is the will of the murderers to disrupt the constitutional life of Lebanon, to deprive the Lebanese people and communities of their political rights in the framework of a united, sovereign, and democratic Lebanon. The U.S. and France, with their partners in the United Nations Security Council, are vigilant in protecting this process and the intra-Lebanese political dialogue. France, as president of the Security Council, is keenly attentive to this. Such a result will mark not only the defeat of the murders but also the victory of all Lebanese people and communities."

So we in addition to this painful episode, we spoke about other topics.

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.

QUESTION: (Inaudible.)

SECRETARY RICE: Oh, we haven't -- first of all, it's an excellent relationship and we, of course, have long and enduring relations with France. But I can tell you that the President and President Sarkozy have met a couple of times. They get on extremely well. And I think there are many, many things that France and the United States are going to be able to do together, for instance, the work that we're doing on Lebanon.

FOREIGN MINISTER KOUCHNER: Having good relation doesn't mean that we're in complete agreement every day, everywhere, but we have excellent relations.

Okay.

QUESTION: Madame Secretary, has Blackwater resumed its protective activities outside the Green Zone and are you confident that Blackwater will be able to fulfill its contract and remain in Iraq?

SECRETARY RICE: Well, Charlie, I'm not going to comment on our security procedures in Baghdad; I think for reasons that you will fully understand. But we take very seriously what happened in Iraq.

I want to say that, of course, we have needed and received the protection of Blackwater for a number of years now and they have lost their own people in protecting our own people, and that needs to be said, in extremely dangerous circumstances. I take very seriously and called Prime Minister Maliki to regret the loss of life, and we will review with -- expeditiously the procedures. We will review how we carry out our security. And we will have in this joint commission with the Iraqis, I think an open and transparent view of what is going on.

But it is extremely important to recognize that we're doing important work there. We need protection for our diplomats. And I'm quite certain that with goodwill we can resolve this.

But a little later on, I think Sean will be talking to you about some directives that I've given to the Department for a full and complete review of how we are conducting our security details for our -- how we are providing security to our diplomats.

The Minister must leave because he has to get to the UN for a meeting. Thank you.

2007/791