1:09 AM

Netanyahu to deliver policy speech


Netanyahu, left, is at odds with Obama, who has called for an end to settlement expansion

Binyamin Netanyahu, the Israeli prime minister, is due to deliver a major policy speech outlining his vision of how to advance the peace process with the Palestinians and the Arab world.

The speech on Sunday comes as Israel is facing pressure from the US, its main ally, to end settlement expansion and accept the establishment of a Palestinian state.

"The prime minister intends to articulate a clear view as to how he wants to move forward in the peace process with the Palestinians," Mark Regev, Netanyahu's spokesman, said on Saturday.

"His vision is to move forward towards a historic reconciliation, and it is clear that all parties must play a role if this process is to succeed."

But Netanyahu has been at odds with Barack Obama, the US president, who has repeatedly called for an end to settlement expansion, in part to improve US relations with the Muslim world, which were damaged by the policies of George Bush, his predecessor.

US-Israeli divide

Netanyahu's government has said construction in existing Jewish settlements would continue to accomodate growing families, despite Obama calling for a comprehensive freeze.

Netanyahu has also refused to endorse the creation of a Palestinian state, a cornerstone of US Middle East policy.

"I don't think that Netanyahu will use the expression 'two states for two people'," Ofir Akonis, an MP in Netanyahu's Likud party, told Israel Radio.

Netanyahu briefed George Mitchell, US special envoy to the Middle East, and other senior diplomats this week on his planned speech.

But the steps which Netanyahu outlined to Mitchell were "not adequate" to satisfy Washington, a US official told a meeting of the Quartet of Middle East mediators.

Past agreements with the Palestinians bind Netanyahu to a 2003 "road map" that sets out conditions to establish a Palestinian state.

Netanyahu, instead, has attempted to move the focus in talks with the Palestinians from territorial issues to initiatives to improve economic, security and political relations.

Mahmoud Abbas, the Palestinian president, has said negotiations will be useless unless Netanyahu commits to working towards Palestinian statehood and a freezes settlement growth.

The Israeli leader is also set to discuss Iran, Israeli officials said, whose nuclear aspirations Tel Aviv perceives as a potential threat.

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