Arab ministers in Israel for land-for-peace talks

JERUSALEM, July 25 (Reuters) - Egyptian and Jordanian envoys opened the first talks in Israel over a landmark Arab League land-for-peace plan today, saying they hoped to create conditions that will lead to a Palestinian state.

The one-day visit to Jerusalem and Tel Aviv was the first by representatives of the Arab League to promote the Arab peace plan, which is meant to spur Israel to cede occupied Arab land in exchange for Arab recognition of the Jewish state.

''We are extending a hand of peace on behalf of the whole region to you, and we hope that we'll be able to create the momentum needed to resume fruitful, and productive negotiations,'' between Israel, the Palestinians and Arab states, Jordanian Foreign Minister Abdelelah al-Khatib told Israeli President Shimon Peres.

''It's time for peace,'' Peres said.

Egyptian Foreign Minister Ahmed Aboul Gheit and al-Khatib will also meet Israeli Prime Minister Ehud Olmert after talks with Foreign Minister Tzipi Livni.

''We think that time is of the essence,'' Gheit said.

The land-for-peace initiative offers Israel normal ties with all Arab states in return for a full withdrawal from the lands it seized in the 1967 Middle East war, creation of a Palestinian state and a ''just solution'' for Palestinian refugees.

Israel sought to cast the arrival of the Egyptian and Jordanian envoys as a potential turning point in relations with the Arab League, which has long shunned the Jewish state.

Arab diplomats played down the gesture. Egypt and Jordan already have full relations with Israel, and despite US and Israeli appeals to expand the number of Arab participants in the talks, Saudi Arabia and other Arab League members with no formal ties to the Jewish state have refused to take part.

Olmert has said he sees positive points in the Arab peace initiative. But Israel opposes the return of Palestinian refugees to their former homes in what is now the Jewish state and wants to hold on to major settlement blocs in the West Bank.

Olmert spokeswoman Miri Eisin said Israeli would use today's visit ''to respond and present our positions as a base for a future continuing dialogue'' over the Arab initiative.

The Egyptian and Jordanian envoys arrived as Tony Blair wrapped up his first talks in the region with Israeli and Palestinian leaders as the new envoy for the Quartet of Middle East mediators.

The former British prime minister said he saw a ''moment of opportunity'' for peace.

The United States has been pushing Olmert to move ahead to ''serious'' negotiations over border issues with Palestinian President Mahmoud Abbas, who dismissed a unity coalition with Hamas last month after the Islamists seized control of Gaza.

In a shift, Israeli officials said earlier this week that Olmert was ready to start discussing in ''general terms'' core issues, including borders, with Abbas. But the officials made clear that Olmert still believed it was premature to start detailed final-status negotiations.

REUTERS SBC RN1648