• This is a partial transcript from "Your World with Neil Cavuto," May 31, 2006, that was edited for clarity.

    NEIL CAVUTO, HOST: Iran can expect sanctions if it does not end its nuclear program and agree to multilateral talks soon, that coming from a White House official just moments ago.

    Meanwhile, Iran calling today's offer to talk from the U.S. nothing but a propaganda move.

    Reaction now from America's ambassador to the United Nations, John Bolton. He's here for an exclusive interview.

    Ambassador, good to have you.


    CAVUTO: What do you make of the propaganda comment?

    BOLTON: Well, I hope this is not a real reaction from Iran. I think it's important that they take a very careful look at what Secretary Rice laid out today, because it really is their last chance, in many respects.

    She is saying that we're prepared to sit down at the table with Iran if they fully suspend their uranium enrichment and reprocessing activities.

    So, that's a major effort on our part to avoid this being a discussion about what's the United States doing wrong and get it back to the real point, which is what Iran is doing wrong.

    CAVUTO: All right. They're claiming it is propaganda, though. Is it?

    BOLTON: No. I mean, this is very serious.

    And you may recall Jeane Kirkpatrick's famous speech in 1984, where she talked about the people who always blame America first.

    And there are a lot of people internationally — and the Iranians have been making this point — that, if we don't sit down and talk, this isn't a serious effort.

    All right, we've said now, consistent with what the IAEA has said, consistent with what the Security Council has said, that, if the Iranians give up their enrichment activities, then we're prepared to take that excuse away from them and focus on what really the problem is, which is their pursuit of nuclear weapons.

    CAVUTO: All right, you say if they give up the enrichment activity. What if they say, we will give up the enrichment activity, but withhold doing so until the talks start?

    BOLTON: No, I think Secretary Rice was very clear on this today, that this is a precondition, on which we're not going to compromise.

    BOLTON: And it's a precondition consistent with what the five permanent members of the Security Council, the Security Council itself and the IAEA have already said. They have to suspend their uranium enrichment and plutonium reprocessing activities. If they do that, that's a sign they're willing to have serious discussions. And we would sit down with the Europeans and the Iranians and do that.

    If they're not willing to do that, the other alternative is clear, too, is that we will move for economic and political sanctions to make it clear to them what their choice is.

    CAVUTO: All right. So, we have a twin-channel strategy here, right?

    BOLTON: Well, really, we have three channels going.

    We have the possibility of diplomatic negotiations with Iran, if they show they're serious about negotiations. We have the track in the Security Council of potential economic sanctions. And we have the activity that we can engage in without Security Council approval, the president's Proliferation Security Initiative to deny Iran sensitive materials and technology, the financial pressure we can apply, and the support for the democracy movement in Iran.

    So, there are really three tracks we're talking about.

    CAVUTO: You have to verify if they say they're stopping this enrichment activity. You have to verify that, right?

    BOLTON: That's correct.

    CAVUTO: Who verifies?

    BOLTON: Well, I think the IAEA can provide some verification, but we've also got...

    CAVUTO: But they keep kicking those guys out.

    BOLTON: What we call, euphemistically, our national technical services. We have our own ways of verifying.

    We want to be sure that the Iranians are serious. And, in any major anti-proliferation effort, verification is key. So, if the Iranians are really only seeking nuclear power for civil purposes, which is the cover story they've been using, they should have no problem with verification.

    CAVUTO: I'm showing my ignorance with nuclear technology, but is there a way to distinguish between enrichment for peaceful purposes and enrichment for sinister purposes?

    BOLTON: Well, one way to tell is what level they've enriched the uranium to. Have they gone above what's called reactor-grade uranium?

    But, really, their program is much more extensive than enrichment, and I think that's why continuing...

    CAVUTO: So, you don't just believe that this is for peaceful purposes?

    BOLTON: Absolutely not. There's no way that the Iranians could have engaged in the breadth and scope of the program that they've undertaken unless they had a weapons purpose in mind.

    CAVUTO: The reason why I ask that, Ambassador, Iraq's minister had said, foreign minister, last Friday, look, they're free to pursue peaceful technology.

    I don't know what made him say that or to accept them at face value. What did you read into that?

    BOLTON: Well, I don't think there's anything, really, more there than the possibility that if, in fact, Iran really were to commit to only peaceful activities, that the Non-Proliferation Treaty allows that.

    But the Non-Proliferation Treaty is also very clear. They cannot pursue nuclear weapons. And they're in violation of that obligation right now.

    CAVUTO: But what Hoshyar Zebari is saying, Iran doesn't claim that they want to obtain a nuclear weapon or a nuclear bomb, so there is no need that we ask them for any guarantee now, which is before any of these overtures today, Ambassador.