In Tehran, European Union diplomat Javier Solana presented Iran a modified package of economic, technological and political incentives on behalf of the United States, Germany, Britain, France, Russia and China. Iran immediately rejected the deal because it requires suspending uranium enrichment, a program the West fears could be part of a nuclear weapons program.
"I'm disappointed that the leaders rejected this generous offer out of hand," Bush said. "It's an indication to the Iranian people that their leadership is willing to isolate them further. Our view is we want the Iranian people to flourish and to benefit."
French President Nicolas Sarkozy took the same approach as Bush at a joint news conference. He said the Iranian people "deserve better than the impasse into which some of their leaders are leading them."
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Iran says it is enriching uranium to generate electricity, not to build nuclear weaponry
- a claim the West doubts is true.
The repackaged incentives were agreed on last month in what diplomats called mainly cosmetic changes to the original 2006 offer, while maintaining the threat of further U.N. sanctions. So far, three sets of sanctions by the United Nations have failed to bring about any change.
Bush also issued a warning to Syrian President Bashar Assad, saying the Syrians should stop working with Iran to destabilize the Mideast. "My message would be `Stop fooling around with the Iranians and stop harboring terrorists,'" Bush said.
Both leaders were asked what message they want to send to the Syrians to get them to normalize relations with the West and achieve stability in Lebanon. Bush quickly responded, saying Syria should serve as a constructive force in the Middle East to help the advance of a Palestinian state and make it clear to the Islamic militant group Hamas that "their terror should stop for the sake of peace."
On Iraq, Bush brushed off criticism that a long-term security deal between the United States and Iraq was faltering.
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"If I were a betting man, we'll reach an agreement with the Iraqis," Bush said. "Of course, we're there at their invitation. It's a sovereign nation ... We're going to work hard to accommodate their desires. It's their country."
The deal would provide a legal basis for the presence of U.S. forces in Iraq after a U.N. mandate expires. Bush said the agreement would not commit future U.S. presidents to any troop levels in Iraq and would not establish permanent U.S. bases.