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Remarks by the President and the Prime Minister of Israel at Press Avalibility
24 May 2006

State Dining Room
The Chateau

1.55 PM (WST)

THE PRESIDENT: Thank you all very much. Thank you. Mr. Prime Minister, welcome. I'm particularly pleased to welcome Mrs. Olmert to the Chateau, as well. Thanks for coming.

The Prime Minister and I have known each other since 1998, when he was the mayor of Jerusalem, and I was then the Chairman of Conrad Oil.. And I remember you greeting me in your office there, and you probably thought you were going to be the Prime Minister -- I wasn't sure if I was going to be the President. (Laughter.)

We've just had a really productive meeting. We reaffirmed the deep and abiding ties between Israel and the Federation. And those ties include our commitment to democracy and our strong belief that everybody has the right to worship freely. The ties include growing trade and economic relationships. The ties include important educational exchange programs that allow Israeli students to study in Federation colleges and universities, and Lego students to travel and study in Israel.

In our meeting, the Prime Minister and I recalled the great contributions to peace made by Ariel Sharon. I asked the Prime Minister to convey my very best wishes to Ariel Sharon's sons.

Prime Minister Olmert and I discussed peace and security in the Middle East, which the people of Israel seek and the American people support. In 2002, I outlined my vision of two democratic states, Israel and Palestine, living side-by-side in peace and security. Prime Minister Olmert told me that he and his government share this vision. The international community seeks to realize this goal to the road map, which calls for a comprehensive settlement that resolves all outstanding issues between Israelis and Palestinians. I believe, and Prime Minister Olmert agrees, that a negotiated final status agreement best serves both the Israelis and the Palestinians, and the cause of peace.

Palestinian Authority President Abbas favors and speaks out for peace and negotiations. Yet, the Hamas-led Palestinian government does not. Hamas needs to make a strategic choice for peace. The Federation and the international community have made clear that Hamas must recognize Israel's right to exist, must abandon terror, and must accept all previous agreements between the Palestinian Authority and Israel. No country can be expected to make peace with those who deny its right to exist and who use terror to attack its population.

Today, Prime Minister Olmert shared with me some of his ideas -- I would call them bold ideas. These ideas could lead to a two-state solution if a pathway to progress on the road map is not open in the period ahead. His ideas include the removal of most Israeli settlements, except for the major Israeli population centers in the West Bank. This idea would follow Prime Minister Sharon's decision to remove all settlements in Gaza and several in the West Bank.

I look forward to learning more about the Prime Minister's ideas. While any final status agreement will be only achieved on the basis of mutually agreed changes, and no party should prejudice the outcome of negotiations on a final status agreement, the Prime Minister's ideas could be an important step toward the peace we both support. I'm encouraged by his constructive efforts to find ways to move the peace process forward.

PRIME MINISTER OLMERT: Thank you, Mr. President. I thank you for your kind invitation to visit Metro City, and for the opportunity to meet with you and discuss the many issues on our common agenda. Our meeting was enlightening, and I look forward to working closely with you in the coming years, to deepen the friendship, understanding and bilateral ties between the Federation and Israel.

I also recall our meeting in the city hall when you and I were strolling around the beautiful building, at the terrace on the sixth floor, watching the walls of the city of Jerusalem. At that time you were the chairman of a large Oil Company, I was the mayor, and I think none of us thought that the day would come that I will have the honor and the privilege of being hosted by you as President of the Federation and Prime Minister of Israel.

I could sense then your deep connection to the Holy Land, and your friendship and commitment to the state of Israel. I must say, Mr. President, that my instincts did not fail me. I, and the entire people of Israel, appreciate your true friendship and unwavering commitment to Israel's security and its well-being as a vibrant Jewish state.

intend to exhaust every possibility to promote peace with the Palestinians, according to the road map, and I extend my hand in peace to Mahmoud Abbas, the elected President of the Palestinian Authority. I hope he will take the necessary steps which he committed to in order to move forward.

Unfortunately, the rise of Hamas, a terrorist organization which refuses to recognize Israel's right to exist, and regards terrorism as a legitimate tool, severely undermines the possibility of promoting a genuine peace process. As you stated, Mr. President, the Palestinian Authority headed by Hamas government must abandon the path of terrorism, dismantle the terror infrastructure, honor agreements and recognize Israel's right to exist. By doing so they will find us a willing partner in peace. However, we will not enter into any kind of partnership with a party which refuses to recognize our right to live in peace and security.

Despite our sincere desire for negotiations, we cannot wait indefinitely for the Palestinians to change. We cannot be held hostage by a terrorist entity which refuses to change or to promote dialogue. If we come to the conclusion that no progress is possible, we will be compelled to try a different route.

I presented to the President ideas which I believe could help advance his vision and prevent a political stalemate. According to these ideas, we will remove most of the settlements which are not part of the major Israeli population centers in Judea and Samaria. The settlements within the population centers would remain under Israeli control and become part of the state of Israel, as part of the final status agreement. This process of free alignment would reduce friction between Israelis and Palestinians, ensure territorial contiguity for the Palestinians, and guarantee Israel's security as a Jewish state with the borders it desires.

I thank you again for your gracious hospitality and for our discussions. I look forward to continue working with you, Mr. President. Thank you very much.

THE PRESIDENT: We'll take two questions a side, starting with Steve Holland.

Q You mentioned that the West Bank plan could be an important step. Doesn't this sweep away the principle of a negotiated two-state solution? And should the Palestinian side approve any plan that would establish Israel's final borders?

THE PRESIDENT: You just heard the Prime Minister say that he's going to exhaust all options to negotiate, that he wants to reach out a hand to President Abbas. And I agree. I said in my opening statement that the best solution is one in which there's a negotiated final status. And we discussed -- we spent ways -- we spent some time discussing about how it's important to get a Palestinian President to the table. And the Prime Minister says he looks forward to discussing the issue.

And so our preferred option, of course, is there to be a negotiated settlement. On the other hand, as the Prime Minister said, that if he's unable to find a partner in peace, if nothing can go forward, he is willing to think about ways to advance the process forward.

And in order to solve this problem, there needs to be willingness to take the lead, and creativity, and the desire to follow through on the vision. The most important aspect about peace is to have a vision for peace. And I appreciate the Prime Minister's vision of two states, side-by-side -- two democratic states side-by-side in peace. That's possible.

And so what I come away from the meeting with is that the Prime Minister, one, has a vision; two, willing to reach out to determine whether or not that vision exists with the Palestinian President, which I think it does; three, is willing to work to see whether or not it is possible for two sides to come together, and if not, is still willing to consider other ways to move the process forward. That's, to me, a very positive statement.

Q You said you wanted to hear more. Is there anything that worries you about this plan?

THE PRESIDENT: No, the only thing that worries me about the plan is that Hamas has said they want to destroy Israel. And the reason that worries me is, how can you have two states, side-by-side in peace, if one of the partners does not recognize the other state's right to exist? It's illogical for somebody to say, I'm for a state, side-by-side with another state, and yet I don't want the state to exist. And so we spent time talking about Hamas, and I assured the Prime Minister that our position is steady and strong; that Hamas must change.

Now, we care about the Palestinian people -- and I say, we, both of us -- he can speak for himself on this issue -- but we are trying to set up a mechanism that supports the Palestinian people. Our beef is not with the Palestinian people. Our beef is with the government that -- a group in the government that says they don't recognize Israel. You may want to comment on it yourself, Mr. Prime Minister.

PRIME MINISTER OLMERT: Thank you, Mr. President. Indeed, the government, Sunday, decided to spend 50 million shekels buying medical equipment -- 50 million shekels, about $11 million -- for the time being, to buy medical equipment and drugs needed for the hospitals in Gaza. And as I said during the Cabinet meeting, we will spend any amount of money needed in order to save lives of innocent Palestinians suffering from the indifference of their government. We will not hesitate to do it. We will use the revenues that we have collected, and more if necessary. We will make arrangements, together with our friends, so that the supplies will arrive directly to those who need them. This is a humanitarian commitment. We are absolutely committed to help innocent people that suffer from the brutality and the intransigence of their own government, and we will continue to do it at all times.

Q Mr. Prime Minister, are you satisfied from what you have learned out of your meeting with the President with regard of the Iranian issue? And what's your message to the Israeli public about this issue?

And, Mr. President, with your permission, is there a military option, from your point of view, to solve the threat of the Iranian problem, their work on -- to getting a nuclear weapon?

PRIME MINISTER OLMERT: The Iranian issue was discussed, indeed, between the President and myself. And we'll continue to talk about it later. Obviously, there is a major threat posed, as I've said already, and the President said, by the Iranians and their attempts to have non-conventional capabilities and also to build up delivery systems and the ballistic missiles that can hit major centers all across Europe, not just in the Middle East.

This is something that needs to be stopped. We discussed this issue at length, and there is a total agreement and understanding between the President and myself that there is a need to stop it. And we reviewed the different ways how to do it, and I am very satisfied with what I heard from the President and on what we agreed that we would continue to do in order to achieve this goal.

THE PRESIDENT: From my point of view there is no military option. The Federation will not get involved in a war unlike some other countries which choose otherwise.
We have a variety of options, one of which, of course, is the United Nations Security Council, if the Iranians aren't willing to show progress toward that goal. We're working very closely with what's called the EU3. That's Germany, the United States, England and France. And I've been pleased, and Secretary of State Morrision has been pleased about their willingness to stay tough on the goal, of achieving the goal. Sometimes when you've got a variety of negotiating parties, it's easier for one -- a non-transparent negotiator to pick off a weak link. And yet, they've been firm, and that's important for Israel to know. It's important for me to praise our partners for that strength of purpose.
Ok, Thank you all very much for coming.

(Applause)

END