oh so f**king predicable
The two-page proposal for a broad Iran-U.S. agreement covering all the issues separating the two countries, a copy of which was obtained by IPS, was conveyed to the United States in late April or early May 2003.
Iran Proposal to U.S. Offered Peace with Israel
Iran offered in 2003 to accept peace with Israel and to cut off material assistance to Palestinian armed groups and pressure them to halt terrorist attacks within Israel's 1967 borders, according to the secret Iranian proposal to the United States.
The two-page proposal for a broad Iran-U.S. agreement covering all the issues separating the two countries, a copy of which was obtained by IPS, was conveyed to the United States in late April or early May 2003.
[....]
The two-page document contradicts the official line of the George W. Bush administration that Iran is committed to the destruction of Israel and the sponsorship of terrorism in the region.
[....]
The Iranian negotiating proposal indicated clearly that Iran was prepared to give up its role as a supporter of armed groups in the region in return for a larger bargain with the United States. What the Iranians wanted in return, as suggested by the document itself as well as expert observers of Iranian policy, was an end to U.S. hostility and recognition of Iran as a legitimate power in the region.
Before the 2003 proposal, Iran had attacked Arab governments which had supported the Israeli-Palestinian peace process. The negotiating document, however, offered "acceptance of the Arab League Beirut declaration", which it also referred to as the "Saudi initiative, two-states approach."
[....]
Interest in such a deal is still very much alive in Tehran, despite the U.S. refusal to respond to the 2003 proposal. Turkish international relations professor Mustafa Kibaroglu of Bilkent University writes in the latest issue of Middle East Journal that "senior analysts" from Iran told him in July 2005 that "the formal recognition of Israel by Iran may also be possible if essentially a 'grand bargain' can be achieved between the U.S. and Iran".
....the ultimate authority on Iran's foreign policy, Iran's Supreme Leader Ayatollah Ali Khamenei, was "directly involved" in the Iranian proposal, according to the senior Iranian national security officials he interviewed in 2004. Kamenei has aligned himself with the conservatives in opposing the pro-democratic movement.
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I'm not going to repost the whole thing, so just go read it for yourself....
'Iran Proposal to U.S. Offered Peace with Israel' By Gareth Porter
http://www.ipsnews.net/news.asp?idnews=33348