He and and Tehran’s senior nuclear negotiator Saeed Jalili both characterised the talks as “constructive.” Iran now has two weeks to give a response to the proposal for a freeze on the expansion of Iran’s uranium enrichment in exchange for a freeze on sanctions. “We have not got an answer to the most important issue... we are looking forward to an answer to these questions in a couple of weeks,” said Solana. 

The talks were attended by the number three official in the US State Department, William Burns. This was the first such high-level contact between Washington and Tehran since Iran’s Islamic Revolution in 1979. While the US says he would attend only this session of talks, a leading US expert on Iran says his appearance amounted to a “180 degree” reversal of a long-standing US refusal to engage with Iran.

The Bush administration is following a carrot and stick policy at this juncture. On the one hand, Burns’ presence shows that bilateral dialogue and, even, the opening of a US interest section in Tehran (providing for the return of US diplomats) could be the outcome of acceptance of the so-callled “freeze for freeze” formula. On the other hand, the administration has warned that Iran would face “confrontation” — certain sanctions and possibile militay action — if it fails to suspend uranium enrichment, which the West fears could be used to make a nuclear weapon. The emphasis at the moment, is on diplomacy and, if Iran does not go along with the formula, sanctions rather than military action which could send already soaring oil prices spiraling upward and prompt an Iranian military response.

Analysts argue that Iran is likely to try to string out talks on the freeze formula until the Bush administration leaves office in January next year.

“Why do a deal with a lame-duck administration when a new administration with fresh ideas on how to handle this problem is coming in?” one Washington pundit asked.