Israel Reaches Out to Abbas on Palestine

Ehud Olmert said today he is willing to discuss the creation of a Palestinian state if the new government headed by president Mahmoud Abbas pledges to combat terrorism.

The Israeli prime minister said if the Fatah-led government showed it was a "credible and serious administration" committed to defeating terrorism, his government was ready to enter into talks.

Speaking at the White House prior to talks on Palestinian and other regional issues with president George Bush, Mr Olmert said the dramatic schism that followed Hamas's takeover in Gaza last week presented an "opportunity" to empower Palestinian moderates that he was determined to pursue.

"I am going to make every possible effort to cooperate with him (Mr Abbas)... There is no question that I want to talk to him." Mr Olmert said.

The objective remained the two-state solution proposed by Mr Bush five years ago, he added. "This is the ultimate goal."

But having exorcised the Hamas "terrorists", Mr Olmert stressed that the new Palestinian government must show that it was able "to upgrade the quality of life in the West Bank [a reference to previous Fatah corruption], improve security, and fight terror in the most effective way".

Mr Bush said the US fully supported Mr Abbas and his new prime minister, Salam Fayyad, and was "open to the idea" of resumed peace talks.

Attempting to underscore Hamas's isolation, he said Mr Abbas was "president of all the Palestinians" and Mr Fayyad was a "good fellow".

But to the likely disappointment of Mr Abbas, who had urged the president to reactivate peace talks in a telephone conversation yesterday, Mr Bush indicated he would offer no specific proposals or advice.

In their public remarks, neither leader addressed the question of how Israel and western countries propose to handle a Hamas-led Gaza. The Islamist movement does not recognize Mr Abbas's new government and could potentially disrupt any new arrangements. But so far at least, the Bush administration appears to be following a "West Bank first" policy.

Mr Olmert said Israel would not be "indifferent" to the plight of Palestinians trying to leave Gaza for the West Bank. But nor did he offer free passage, saying instead that "we will check every case".

Yesterday, the state department announced that $40m (£20m) in US humanitarian aid, mostly earmarked for Gaza, would be distributed by a UN agency. The two leaders said they would also discuss Iran and Syria.

Asked about military action to halt Tehran's alleged nuclear weapons program, Mr Bush said all options remained on the table.

On possible talks between Syria and Israel, Mr Olmert said there was no need for US mediation, as suggested by the Damascus government - and Mr Bush said he had not offered it. Mr Olmert could make up his own mind whether to negotiate, the president said.