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The linkage of the five Iranian prisoners with a strategy to get Iran to use its influence with the Shi'ites, the refusal of the Bush administration to release the five, despite Rice's conclusion that they were no longer "useful", and the administration's pursuit of "dialogue" with Iran and Iraq all suggest that administration hardliners have regarded the Iranian prisoners from the beginning as hostages to be given up in return for Iranian cooperation on Iraq.
The Iranian rebuff to the US proposal for a Rice-Mottaki meeting makes it clear, however, that Iran will not discuss a deal involving its cooperation on Iraq for the return of its officials. In ruling out the meeting with Rice, Mottaki declared on Wednesday, "For the moment the conditions do not exist for such a dialogue."
Iran has always insisted that the US must signal a change in its policy toward Tehran before any direct diplomatic dialogue could begin. That would mean at least reciprocating Iranian gestures of goodwill, if not acknowledging that the US is prepared to address legitimate Iranian concerns about US policies.
Rice's initial suggestion that the Iranians should be released seems to reflect an awareness on the part of realists within the administration that the US cannot have a diplomatic dialogue with Iran while holding Iranian hostages as bargaining chips - and threatening to take even more. But her cave-in to the hardline position suggests that Cheney still has Bush's ear on Iran policy.
http://www.atimes.com/atimes/Middle_East/IE05Ak02.html