Olmert in Jordan: Israel not expanding settlements

AQABA - Prime Minister Ehud Olmert met on Tuesday with Jordan's King Abdullah ll at the seaside resort of Aqaba for a high-level meeting focusing on the current troubled relations between Israel and the Palestinian Authority.

King Abdullah called on Olmert to set a timetable for making a deal with the Palestinians, urging the use of the Arab peace initiative that offers Israel recognition in return for land.

Olmert reiterated Israel's readiness to discuss the proposed initiative, keeping in line with past statements which welcomed the plan as a good starting point for talks but that some changes would have to be made.

Abdullah expressed his concern that Israel is planning new settlements in the West Bank or to expand existing ones but Olmert called such reports baseless. "Israel is not building new settlements nor is it expanding the established settlements beyond their existing borders," said Olmert.

The two also discussed the financial crisis in the Palestinian Authority and Abdullah also urged Olmert to lift the economic blockade. Olmert said that Israel would consider unfreezing the funds if it can be assured that they would be used for humanitarian purposes and not terrorism.

The leaders also noted the growing chaos in Gaza as violent clashes between rival factions Hamas and Fatah left 11 dead and dozens wounded Tuesday. Olmert voiced his concern over Hamas' growing power in the strip, saying that Israel's restraint was not without limits.

Olmert also spoke with Abdullah about the construction project at the Mugrabi Gate outside the Temple Mount which created a storm in the Arab world last February as Muslims claimed that Israel was trying to damage the Temple Mount. A UN delegation to the site said the claims were unfounded. Olmert said however that at present time there was no work being done at the site.

Sources within the prime minister's office said the king received Olmert warmly during the visit and that the leaders' meeting was lengthy.