JPost: Bush ignored Iranian offer of everything in 2003

via Metafilter, but at the Jersualem Post

Officials in US President George W. Bush's administration turned down a 2003 Iranian offer to begin talks with the US, recognize Israel, and end support of Palestinian terror organizations, The Washington Post reported on Sunday.

The proposal, which arrived via fax along with a letter of authentication by a Swiss ambassador, was ignored. Reports have circulated in the past that Iran had extended its hand to the US, but the document itself was only recently obtained by the Post - reportedly from Iranian sources - and confirmed as genuine by both American and Iranian officials.

If true, this sends my head spinning.  Even if you don't trust Iran, any interest in diplomacy would involve following up on an overture like this.  I've been trying to think of logical reasons why they might not but I've run out of possibilities outside of the glaringly evil (Bush wants war) or the glaringly incompetent (they just forgot to read it).  

is there any possible logical explanation for this?  

How do those that are rattling the saber with Iran explain something like this?