WASHINGTON, Oct 7: The US is not considering any proposal to upgrade diplomatic ties with Iran, the State Department said on Friday. The comments from the State Department followed a Wall Street Journal report that the department has circulated a policy paper proposing expanded contacts with the Iranian government, including a proposed overture to set up sub-embassy level diplomatic “interests sections” in the two capitals.

At a news briefing, State Department spokesman Sean McCormack did not deny the existence of a policy paper proposing changes in the US approach to Iran. However, he said senior policy makers in the administration were not proposing any broadening of relations, or other incentives for Iran to change its behaviour.

“Secretary Rice, (and) senior policy-makers are not contemplating any new incentives, any incentives for Iran to change its behaviour,” said Mr McCormack. “Iran through its own actions has isolated itself, and I think it is now up to Iran to demonstrate that it wants to reverse the course that it is currently on, and that is a course of greater isolation from the international community.”