British, Israeli PMs meet amid new Mideast peace drive

Israeli Prime Minister Benjamin Netanyahu began a European charm offensive Tuesday, holding his first talks with his British counterpart as efforts gather pace to relaunch the Middle East peace process.

The hawkish Netanyahu, who has upset London over Israel's settlement activity in East Jerusalem, was to meet with Gordon Brown at the onset of his first trip to the continent since taking office in April.

The visit to London comes ahead of a summit on Thursday with German Chancellor Angela Merkel, whose government is traditionally one of Israel's closest allies in Europe.

As well as debating the prospects of peace with the Palestinians, officials say Netanyahu will also discuss international efforts to halt archfoe Iran's nuclear drive as the United States threatens new sanctions if Tehran fails to return to the negotiating table.

The visit to London offers Netanyahu a chance to patch up relations with Brown's government which recently said it was "appalled" by the eviction of two Palestinian families from their homes in a district of Arab east Jerusalem which was annexed by Israel in 1967 after the Six Day War.

Israel has come under increasing diplomatic heat over its settlement activity in east Jerusalem and the occupied West Bank and has refused to heed US and other international calls to freeze such construction.

During his trip to London, Netanyahu will also meet US President Barack Obama's Middle East envoy George Mitchell who is pressing Israel hard to freeze settlement activity in the occupied West Bank and east Jerusalem where the Palestinians hope to establish the capital of their promised future state.

Britain and Germany are among the many states to back the US demand, seen as key for reviving the peace talks which were halted last December when Israel launched a deadly offensive against the Hamas-ruled Gaza Strip.

Netanyahu appeared to be digging his heels in, although he has agreed to temporarily halt inviting construction tenders in the West Bank.

"The prime minister will make it clear (in his talks with Mitchell) that during the process Israel will not allow any limitation or restriction of its sovereignty over Jerusalem and that there must be guarantees settlers can lead a normal life," a senior Israeli official told reporters.

The issue of Jewish settlements, which the international community considers illegal, is one of the main obstacles in the peace process and the Palestinians have said they will not resume talks without a freeze.

On Sunday Netanyahu said he hoped peace talks could resume by the end of September.

A senior government official told AFP efforts were underway to set a three-way meeting with Obama and Palestinian president Mahmud Abbas in New York on the sidelines of the United Nations General Assembly next month.

"We hope the conditions will ripen to allow a meeting with Abbas and Obama in New York as a symbolic launching of peace talks," he said.

The US State Department echoed optimism on peace talks, spokesman Ian Kelly saying he was hopeful they would restart "very soon."

There was no Palestinian reaction to the statement, but a top official reiterated the need for a total Israeli settlement freeze to restore the peace talks.

Chances of seeing a breakthrough in the peace talks -- first launched in 1993 -- appear slim with Netanyahu heading a hardline government and the Palestinians still unable to bridge a deep internal rift.

Netanyahu's outspoken Foreign Minister Avigdor Lieberman has described Obama's vision for regional peace as "unrealistic," saying he did not see a deal based on a two-state solution "even in another 16 years."

Palestinian prime minister Salam Fayyad said the western-backed Palestinian Authority plans to establish its own de facto state within two years, regardless of the peace process.

Netanyahu's talks with the European leaders will also focus on efforts to halt Iran's nuclear drive, which Israel and the West believe is aimed at developing an atomic bomb, a claim Tehran denies.