Israel stood firm against demands from Barack Obama on Monday to cease
the construction of Jewish settlements and embrace the "two-state
solution" to achieving peace in the Middle East.

By Alex Spillius in Washington
Last Updated: 10:23PM BST 18 May 2009

Benjamin Netanyahu, the Israeli prime minister, in his first meeting
with the US president, made it clear that while he welcomed Mr Obama's
commitment to the region, he was more concerned about dealing with the
threat of Iran than peace talks.

Mr Obama was unable to secure any commitments on ceasing the
construction of Jewish settlements in the West Bank or embracing the
"two-state solution" to achieving peace in the Middle East.

Sitting side by side in the White House, the two leaders hailed the
friendship between their two countries but remained far apart on how to
proceed towards a resolution of the 60-year conflict between Israel and
the Palestinians.

Mr Obama said the Palestinians had to take steps to guarantee Israel's
security – but took a tough line on the construction of settlements on
Arab land.

"Israel is going to have to take difficult steps as well," he said.
"There is a clear understanding we have to make progress on settlements.
Settlements have to stop."

He called on Mr Netanyahu, who leads a hawkish, Right-wing coalition, to
seize a "historic opportunity" to work earnestly for peace.

"It is in the interests of Israel, the US and the international
community to achieve a two-state solution. We have seen progress stalled
on this front. I suggested to the prime minister he has a historic
opportunity to get serious movement on this issue during his tenure," he
said.

There was a conspicuous lack of praise for his 59-year-old Israeli
visitor, whom he said had the "benefit of having served" previously as
prime minister and for having "both youth and wisdom".

The meeting overran to two hours, suggesting that the two sides had
struggled to find a way of presenting a unified face to the watching world.

Though Mr Netanyahu made clear he wanted to hold peace talks with the
Palestinians, he refused to utter the words "two-state solution", the
consensus approach towards peace agreed by previous Israeli governments
and US administrations.

Mr Obama is expected to announce his own revamped version of the "road
map" next month, after he has met Mahmoud Abbas, the Palestinian
president, and Hosni Mubarak, the Egyptian president.

"The terminology will take care of itself," said Mr Netanyahu. "The
important thing is to resume negotiations with the Palestinians as soon
as possible. The issue is less one of terminology than of substance."

He said that if a peace deal delivered a "terror base next door" to
Israel than it would be worthless, and insisted that Hamas, the militant
group that controlled Gaza, had to recognise Israel before he was ready
to make concessions.

The prime minister dwelt at length on the threat posed to Israel by
Iran's pursuit of nuclear weapons.

His goal is to persuade the Americans that Tehran must be reined in
before peacemaking with the Palestinians can progress.

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