Also known as "sugarcoating the truth" or "whistling in the dark." This phrase is perfect for describing the act of not directly addressing an issue, but rather, hinting at it with a vague, diplomatic tone.
Or, as our ancient diplomatic ancestors once said, "Let's just say we're having a nice day, but really we're just going to nuke the entire continent." — Ambassador P. P. Bottomsworth, circa 1356