Speaking at a news conference with visiting German Chancellor and current EU president Angela Merkel on Sunday evening, Israeli Prime Minister Ehud Olmert called for a regional conference involving Israel and all Arab leaders, including the king of Saudi Arabia.

"I want to take this opportunity of being here with the European Union president in order to invite all Arab leaders," he said to reporters.

"I am addressing all heads of Arab countries in announcing that should the Saudi king initiates a meeting and invite both me and Palestinian (National) Authority Chairman (Mahmoud Abbas), I would be glad to go there and speak my mind," Olmert said.

This positive development followed a joint call by the United States and Egypt which asked Israel to agree to talks with a committee of Arab states on reviving the stalled Mideast peace process, diplomats explained.

Last week saw the Arab League bring back to the table a 2002 peace plan which, if respected, would grant Israel full recognition if the Jewish state should withdraw from all captured territories and negotiate on the Palestinian refugees issue.

Olmert welcomed the decision, saying it was an encouraging turn by Arab states, but refused some parts of it. He further denied the existence of a joint US-Israel plan to attack Iran over the summer, dismissing it "a false and baseless rumor."

"I hope that no one operates on the basis of unfounded rumors in order to create a move which could drag us to a violent conflict without any reason," the prime minister said.

Merkel, having landed in Jerusalem on Saturday before visiting Lebanon, promised to work for the release of the kidnapped Israeli soldiers.

During her first Middle East tour as EU president, Merkel also met with Abbas.

Referring to negotiations with Palestine, Merkel stated that Germany would use this chance, but pointed out that conditions were not present until the Hamas section of the the Palestinian unity government agreed to the Quartet conditions of recognizing Israel, renouncing violence and respecting previous peace deals.

The chancellor also said that full support from Arab states was vital to any peace process.

On Sunday morning, Merkel briefed Israeli Foreign Minister Tzipi Livni, saying that Europe would aim to renew international efforts towards peace talks between Israel and the Palestinians, but that ultimately the two sides would have to resolve their differences themselves.

(Xinhua News Agency April 2, 2007)