OLMERT 02 PEACE PLAN GO

Olmert: Israel serious on '02 peace plan By JOSEF FEDERMAN, Associated Press Writer Sun Mar 11, 8:31 AM ET

JERUSALEM - Prime Minister Ehud Olmert on Sunday said he was ready to treat seriously a dormant Saudi initiative calling for a comprehensive peace agreement between Israel and the Arab world in exchange for a full Israeli withdrawal from lands captured in the 1967 Mideast War. Olmert spoke to his Cabinet ahead of a meeting with Palestinian President Mahmoud Abbas, the leaders' second summit in the past month.Both sides acknowledged they expected no major breakthroughs ahead of the formation of a new Palestinian government in the coming weeks.The talks, following an inconclusive meeting on Feb. 19 attended by Secretary of State Condoleezza Rice, are part of U.S.-backed efforts to prod the sides to a return to peace talks.

The Saudi peace initiative, which aimed to solve the Palestinian issue by offering Israel a comprehensive peace, was first proposed in 2002 but never got off the ground. It is expected to be high on the agenda at an Arab League summit later this month in Riyadh, Saudi Arabia.The Saudis, who have never backed away from the initiative, have been pushing hard for other regional countries, many of whom also have endorsed it, to gather behind the initiative in strength to push the peace
process forward.Olmert told his Cabinet on Sunday that Israel is following developments in the Arab world with the utmost attention and noted positive developments among moderate Arab countries.

We have said more than once that the Saudi initiative is a matter which we would be ready to treat seriously and we have not altered our position, he said. We hope very much that at the meeting of heads of Arab states to take place in Riyadh, the positive elements expressed in the Saudi initiative will be revalidated and will perhaps improve the chances of negotiation between us and the Palestinian Authority.

The Saudi push comes at a time when many moderate Arab governments are worried about rising tensions in the region and view progress on the Palestinian-Israeli issue as a way to lower the pressure and also to blunt Iran's growing influence.

Israel in the past has expressed reservations about the Saudi plan. In particular, Israel has resisted calls for a full withdrawal from the West Bank and east Jerusalem both captured in the 1967 war.

Israel also objects to the Saudi plan's endorsement of the right of return for Palestinian refugees displaced by the establishment of Israel. There are hundreds of thousands of refugees and their descendants, and Israel says their return to former properties would mean the end of the Jewish state.Despite such concerns, Israel is interested in improving ties with moderate Arab countries to counter the rising influence of Iran and radical anti-Israel groups, such as Hamas and Hezbollah, in the region.

Israel and Saudi Arabia are both staunch U.S. allies in the Middle East.Israel Radio reported Sunday that Israeli Deputy Defense Minister Ephraim Sneh met Saudi Arabia's ambassador to the United States, Adel al-Jubeir, by chance in Washington recently.It said the men exchanged pleasantries, and quoted the Saudi ambassador as saying there were many problems to solve together.