Rice says Olmert ready to discuss "fundamental issues" leading to creation of Palestinian state, ME

US Secretary of State Condoleezza Rice said Thursday that the Israeli leader is ready to discuss ''fundamental issues'' leading to the creation of a Palestinian state.

The top U.S. diplomat met in Ramallah with Palestinian President Mahmoud Abbas and signed an agreement granting the Palestinians $80 million for reform of their security services. Rice said an international peace conference being promoted by the Bush administration for this fall ''is not to get people together for a photo op'' but rather ''so that we can really advance Palestinian statehood.'' (AP)