MAY 18, 2009

SPEAKERS: PRESIDENT BARACK OBAMA

PRIME MINISTER BINYAMIN NETANYAHU

[*] OBAMA: All right, everybody. Just tell me when everybody's set up.
Great. Well, listen, I -- I, first of all, want to thank Prime Minister Netanyahu for making this visit. I think we had a (sic) extraordinarily productive series of conversations, not only between the two of us, but also at the staff and agency levels.

Obviously, this reflects the extraordinary relationship, the special relationship between the United States and Israel. It is a stalwart ally of the United States. We have historical ties, emotional ties. As the only true democracy in the Middle East, it is a source of admiration and inspiration for the American people.

I have said from the outset that when it comes to my policies towards Israel and the Middle East, that Israel's security is paramount, and I repeated that to Prime Minister Netanyahu.

It is in US national security interests to assure that Israel's security as a (sic) independent Jewish state is maintained.

One of the areas that we discussed is the deepening concern around the potential pursuit of a nuclear weapon by Iran; something that the prime minister has been very vocal in his concerns about, but is a concern that is shared by his countrymen and -women across the political spectrum.

I indicated to him the view of our administration that Iran is a country of extraordinary history and extraordinary potential, that we want them be a full-fledged member of the international community and be in a position to provide opportunities and prosperity for their people, but that the way to achieve those goals is not through the pursuit of a nuclear weapon.

OBAMA: And I indicated to Prime Minister Netanyahu in private what I have said publicly, which is that Iran obtaining a nuclear weapon would not only be a threat to Israel and a threat to the United States, but would be profoundly destabilizing in the international community as a whole and could set off a nuclear arms race in the Middle East that would be extraordinarily dangerous for all concerned, including for Iran.

We are engaged in a process to reach out to Iran and persuade them that it is not in their interest to pursue a nuclear weapon and that they should change course.

But I assured the prime minister that we are not foreclosing a range of steps, including much stronger international sanctions, in assuring that Iran understands that we are serious.

And, obviously, the prime minister emphasized his seriousness around this issue as well. I'll allow him to speak for himself on that -- on that subject.

We also had an extensive discussion about the possibilities of restarting serious negotiations on the issue of Israel and the Palestinians.

OBAMA: I have said before and I will repeat again that it is, I believe, in the interests not only of the Palestinians but also the Israelis and the United States and the international community to achieve a two-state solution in which Israelis and Palestinians are living side by side in peace and security.

We have seen progress stalled on this front. And I suggested to the prime minister that he has a historic opportunity to get a serious movement on this issue during his tenure.

That means that all the parties involved have to take seriously obligations that they've previously agreed to. Those obligations were outlined in the road map. They were discussed extensively in Annapolis.

And I think that we can -- there is no reason why we should not seize this opportunity and this moment for all the parties concerned to take seriously those obligations and to move forward in a way that assures Israel's security, that stops the terrorist attacks that have been such a source of pain and hardship, and that we can stop rocket attacks on Israel, but that also allows Palestinians to govern themselves as an independent state that allows economic development to take place, that allows them to make serious progress in meeting the aspirations of their people.

And I am confident that in the days, weeks and months to come that we are going to be able to make progress on that issue.

So, let me just summarize by saying that I think Prime Minister Netanyahu has the benefit of -- of having served as prime minister previously, he has both youth and wisdom...

(UNKNOWN): (OFF-MIKE)

OBAMA: ... and I think is in a position to achieve the security objectives of Israel, but also bring back historic peace.

OBAMA: I'm confident that he's going to seize this moment and the United States is going to do everything we can to be constructive, effective partners in this process.

NETANYAHU: President Obama, thank you.

(inaudible) friendship to Israel and your friendship to me. You're a great leader: a great leader of the United States, a great leader of the world, a great friend of Israel, and someone who (inaudible) Israel appreciate it, and I speak (inaudible).

(inaudible) first time that we are meeting as president and prime minister, so I was particularly pleased in your reaffirmation of the special relationship between Israel and the United States. We share the same goal and we face the same threats.

The common goal is peace. Everybody in Israel, as in the United States, wants peace.

The common threat we face are terrorist regimes (inaudible) that seek to (inaudible) the peace and endanger both (inaudible).

In this context, the worst danger we face is that Iran would develop nuclear military capabilities. Iran openly calls for our destruction, which is unacceptable (inaudible). It threatens the moderate Arab regimes in the Middle East. It threatens US interests worldwide.

But if Iran were to acquire nuclear weapons, it could give a nuclear umbrella (ph) to terrorists or worse could actually give (inaudible) nuclear weapons. And that would put us all in great peril.

NETANYAHU: So, in that context, (inaudible) I very much appreciate, Mr. President, your -- your firm commitment to ensure that Iran does not develop nuclear military capability, and also your statement that you're leaving all options on the table.