Malta and Israel have agreed on an action plan for cooperation in healthcare, particularly cancer treatment.

Prime Minister Joseph Muscat, who started a three-day visit to Israel this morning, said Maltese patients will benefit from better care and attention in various health areas, especially oncology.

Describing the Israeli health service as "world class", Dr Muscat said the action plan was a follow-up to the memorandum of understanding signed in 2005, on which progress had stalled.

"There is the political will to see this through," he said after talks with Israeli Prime Minister Benjamin Netanyahu in Jerusalem.

This is the first visit by any Maltese prime minister to Israel with Dr Muscat insisting Malta wanted to have good relations with its neighbours.

The agreement on healthcare cooperation was signed by Maltese ambassador to Israel, Simon Pullicino, and Israeli ambassador to Malta Oren David.

It focuses onhealth services delivery, healthcare financing, exchange of information on international conferences and the exchange of medical experts in various branches.

Dr Muscat and Mr Netanyahu discussed other areas of bilateral cooperation, including research and development and tourism. In a light moment, Mr Netanyahu said he wanted to visit Malta as a tourist.

On the Middle East peace process, Dr Muscat said he reiterated Malta's long-held stand in favour of a two-state solution.

"We spoke frankly and honestly about our position and I believe we have established mutual respect," he said.

Dr Muscat also discussed the Iranian nuclear problem with Mr Netanyahu after the issue was pushed onto the agenda by the Israeli PM.

In brief comments to the press before meeting Dr Muscat, Mr Netanyahu said it would be "a historic mistake" if the western powers lifted sanctions against the Arab Gulf state.

Mr Netanyahu insisted the international community could not relent on its pressure when Iran was so close to achieving its goal of having a nuclear weapon.

Dr Muscat said the new opening in Iran's leadership, after the election of a moderate as president, was an opportunity that must not be discarded by the international community. "But Iran must also abide by its international obligations."

This afternoon Dr Muscat will be visiting the Knesset to meet the Speaker. He will also pay his respects at the Holocaust memorial.

On Thursday Dr Muscat will meet Israeli President Shimon Peres and hold talks with Palestinian Prime Minister Rami Hamdallah in the West Bank town of Ramallah.

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