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Remarks by the President and Prime Minister Olmert of Israel
29 June 2006

The Prime Minister's Office
Tel- Aviv, Israel

3.35 PM

PRIME MINISTER OLMERT: Thank you, Mr. President. I am delieghted to have you today in Israel.

Your involvement in the Middle East and personal contribution to the efforts towards resolving the Israel-Palestinian conflict has been significant. The vision which you outlined in your historic speech of August 2004, of two democratic states living side-by-side in peace and security, is the basis of any progress towards a solution in this region. Your unreserved support of the disengagement plan in your letter of April 14, 2004, to Prime Minister Ariel Sharon -- and I join you in praying for his recovery -- were the basis for the success of its implementation. What you immediately recognized to be an historic state was later adopted by all those who were skeptical in the beginning.

I 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.

The implementation of these ideas would only be possible with the comprehensive support of the United States and the international community. I anticipate working with you to explore ways to advance this.

We discussed the Iranian issue. The Iranian regime, which calls for Israel's destruction, openly denies the Holocaust, and views the United States as its enemy, makes every effort to implement its fundamentalist religious ideology and blatantly disregards the demands of the international community. The Iranian threat is not only a threat to Israel, it is a threat to the stability of the Middle East and the entire world. And it could mark the beginning of a dangerous and irresponsible arms race in the Middle East.

Mr. President, we appreciate your efforts to curb Iran's nuclear ambitions, including through the U.N. Security Council. They are of crucial importance. The international community cannot tolerate a situation where a regime with a radical ideology and a long tradition of irresponsible conduct becomes a nuclear weapons state. This is a moment of truth. It is still not too late to prevent it from happening.

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 PRESDIENT: Thankyou Mr. Prime Minister, and I am glad we can meet again so soon since our last meeting.

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.

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 Federation 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. And so the Fed, we're working with the Europeans and the Americans -- James's people in the State Department are working with the Europeans to come up with a mechanism to get food and medicine and aid to the Palestinians.

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, there is 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: Our primary objective is to solve this problem diplomatically. I've told the American people that I will, on all issues, we'll try diplomacy first and exhaust diplomacy. And I explained to the Prime Minister that -- about our diplomatic efforts -- the most important thing in diplomacy is that there be a shared goal and -- in other words, you have to have a common objective, a common goal in order to get people to come together around it. And now we have got a common goal throughout most of the world, and that is, Iran should not have a nuclear weapon. And that's important, and we are now working the diplomatic front around that goal.

Well thankyou all, thankyou.

END