Katsav, pope discuss tax dispute

President Moshe Katsav met with Pope Benedict XVI and other top Roman Catholic officials Thursday to discuss a long-standing tax dispute that has irritated relations between Israel and the Holy See.

Katsav said he told the Vatican secretary of state, Cardinal Angelo Sodano, that he would do everything possible to "accelerate" talks on the church's tax status "and to answer positively to the requests of the church."

The Vatican is seeking ways to lessen its tax burden as one of the significant land owners in the Holy Land and wants access to Israeli courts to handle any quarrels over ownership.

Katsav hopes Pope Benedict will visit Israel in 2006 (Photo: GPO) 

Israeli officials have said the dispute is the main obstacle to wider cooperation between Vatican and Israel, which established diplomatic relations in 1993.

Israel strongly resists giving any special tax exemptions to the Vatican and has offered to create a special panel to oversee property cases involving the Vatican. Israel fears that giving special tax breaks to the Vatican could open the door for other churches and groups to seek similar loopholes.

Katsav said after his meeting that talks on the issues were going well, and working groups would "try to close the outstanding issues as soon as possible." He said "almost all the issues had been resolved," although he did not elaborate.

A Vatican statement said merely that "particular attention" had been paid to the issue during the talks.

Next for Katsav: Naples and Milan

Katsav also said he invited Benedict to visit Israel - an invitation first extended by Prime Minister Ariel Sharon in a letter to the pope in July. The president said he hoped the visit would occur in 2006.

Katsav presented the pope with framed photos of recently discovered mosaics that are believed to be from the Holy Land's oldest church.

The pope said he would like to visit the site of the church, in the northern Israeli town of Megiddo, near the biblical Armageddon, when he visits Israel, Katsav said.

The pope, for his part, gave Katsav a framed and signed copy of the Vatican's landmark 1965 document "Nostra Aetate," which revolutionized the church's relations with Jews.

The Vatican's deputy spokesman, the Rev. Ciro Benedettini, said the Israeli-Palestinian conflict and efforts to improve collaboration in the humanitarian field, particularly in Africa, also were discussed during Katsav's meetings.

Police cleared out parked cars along the main boulevard leading to St. Peter's Square in anticipation of Katsav's visit, which highlighted an official trip to Italy that also included talks with top Italian officials.

The Israeli president was continuing on a private visit to Naples and Milan.

Katsav was the first Israeli president to visit the Vatican when he held talks here with John Paul in 2002. He attended John Paul's funeral in April.