Israeli deputy premier wants peaceful Iran solution

TOKYO, Mar 13 (Reuters) A peaceful solution must be found to the Iranian nuclear problem despite its leader's vow to wipe Israel off the map, Israeli deputy premier Shimon Peres said today, sidestepping any speculation about a pre-emptive strike.

Israel has called Iran an ''existential threat'' and refuses to rule out pre-emptive strikes as a last-ditch means of curbing the nuclear programme that Tehran insists is peaceful, but its leaders have been increasingly adopting a softer public tone.

''I wouldn't like to darken the future with belligerent declarations,'' Peres said at a news conference when asked about the possibility of a pre-emptive strike.

''I do hope that the problem can be solved economically, politically and psychologically.'' Peres also reiterated Israel's long-held policy of ''strategic ambiguity'' about whether it has nuclear weapons, which is meant to deter potential Arab and Islamic foes, including Iran -- a policy Prime Minister Ehud Olmert appeared to veer from in December with remarks that implied possession.

Israel is widely believed to have the Mideast's only nuclear arsenal, but Peres said the only thing his nation has ever declared is that it will not be the first in the region to use nuclear weapons despite the many threats against it.

''We've learned that suspicion is enough. We don't need anything else,'' he added.

Peres is in Tokyo for a four-nation meeting tomorrow about West Asia peace that includes officials from the Palestinian Authority, Jordan and host Japan, as well as a two-day confidence-building conference that starts tomorrow.

Japan has long felt it has a special role to play in the region, since it lacks much of the political baggage of the United States, allowing for warmer ties with Arab nations and enabling it to be a mediator between Israel and the Palestinians in the search for peace.

Peres said he felt hopeful that peace could be achieved but that the divisive nature of the coalition government that Palestinian Authority President Mahmoud Abbas is putting together could make talks tough.

Olmert, who met Abbas for talks on Sunday, has vowed to boycott the coalition government being formed with Hamas Islamists unless it recognises Israel, renounces violence and accepts existing interim peace agreements.

Noting that Hamas tends to reject many of the proposals made by the more moderate Abbas, Peres said Israel remained quite open to discussions.

''But they cannot talk in two voices, and we cannot answer in two voices because it will not be a dialogue, it will be a misunderstanding,'' he added.

REUTERS SB KP1100