US envoy George Mitchell yesterday said Washington was seeking swift renewal of Israeli-Palestinian peace talks and promised Israel its alliance with the United States would remain strong despite differences.

"We all share an obligation to create the conditions for the prompt resumption and early conclusion of negotiations," Mr Mitchell said at a meeting with Israeli President Shimon Peres.

In the most public rift between the United States and Israel in a decade, President Barack Obama and Prime Minister Benjamin Netanyahu are at odds over Jewish settlement expansion and the Israeli leader's reluctance to endorse Palestinian statehood.

With Israelis fearing that Mr Obama hoped to repair his country's image among Arabs by fostering a dispute with Mr Netanyahu, Mr Mitchell spoke in conciliatory terms to reporters.

"Let me be clear. These are not disagreements among adversaries. The United States and Israel are and will remain close allies and friends," Mr Mitchell said.

Mr Mitchell, President Obama's special envoy to the Middle East, reaffirmed Washington's commitment to the establishment of a Palestinian state "side by side in peace and security with the Jewish state of Israel".

In an address to the Muslim world in Cairo last week, Mr Obama called on Israel to stop settlement expansion in the occupied West Bank and accept the right of Palestinians to a state.

Mr Peres, whose post is largely ceremonial, echoed Mr Obama, saying it was time "to take the bull by the horns" and pursue "a state for us and state for the Palestinians".

Under pressure to soften his positions, Prime Minister Netanyahu will spell out his policy on peacemaking with the Palestinians in a speech on Sunday. His security Cabinet was due to meet today to consider US calls to ease the blockade of the Gaza Strip, which is controlled by Hamas Islamists who oppose US-sponsored peace efforts.

Mr Netanyahu, who met Mr Mitchell later in the day, said he hoped their talks would "advance our quest for peace and security with our Palestinian neighbours and the entire Arab world".

"That's our goal. It's our common goal, and I look forward to working with you to accomplish it," Mr Netanyahu told the US envoy.

Mr Mitchell said he hoped the allies could work through the issues, calling them "complex and many", to reach a regional peace. He also assured Mr Netanyahu the United States' "commitment to Israel's security is unshakeable".

Mr Mitchell will meet Palestinian President Mahmoud Abbas on Wednesday.

Mr Abbas has said it would be useless to resume talks with Israel unless Mr Netanyahu froze settlement building and accepted a two-state solution to the Israeli-Palestinian conflict.

Mr Obama spoke to Mr Netanyahu by phone on Monday. The White House said the president "reiterated the principal elements of his Cairo speech, including his commitment to Israel's security".

Mr Netanyahu has said Israel's security is paramount in peace efforts and any self-governing Palestinian entity must be demilitarised and have limited powers of sovereignty.

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