Sheikh, Egypt, Nov 24, SPA -- U.S. Secretary of State Colin Powell says America and Iran could restore relations one day, but after Iran has changed course on terrorism and nuclear development. "It is not in the best interest of international relations for there to be a permanent enmity or animosity between two states," the outgoing secretary told the U.S. TV network ABC while attending a conference on Iraq in this Red Sea resort on Tuesday. His Egyptian hosts had seated Powell next to his Iranian counterpart Kamal Kharrazi at a dinner the night before. He said he had not discussed anything substantial with Kharrazi when they sat next to each other. "It was mostly polite dinner conversation. It was pleasant," Powell said. Kharrazi confirmed this to reporters in Sharm el-Sheik on Tuesday night, and added the light conversation should not be seen as a possible start to better relations. "We do not believe Americans are ready to engage with us in serious dialogue. Dialogue between nations has to be based on mutual respect and equal footing. This is not the case," Kharrazi said.