Obama and Netanyahu note their ‘differences’ after Oval Office talk

President Obama on Friday acknowledged he and Israeli Prime
Minister Benjamin Netanyahu have “differences” over a path to Middle East peace
but expressed optimism that a deal could ultimately be reached.

In a remarkable on-camera joint appearance with Netanyahu,
Obama said he and the prime minister had a “prolonged and extremely useful
conversation on a wide range of issues.”

“Obviously there are some differences between us in terms of
formulations and language, but that’s going to happen between friends,” Obama
said. “I believe it is possible for us to shape a deal that allows Israel to
secure itself…but also allows it to resolve what has obviously been a wrenching
issue for both peoples for decades now.”

{mosads}The meeting between Obama and Netanyahu — 96 minutes in all
— was expected to be tense after the president insisted in a major policy
address Thursday that lines drawn before the 1967 Israeli-Arab war be the basis
for negotiations over a future Palestinian state, a demand that suggested
Israel would give up territory it sees is vital to its security.

The timing of that dramatic announcement seemed meant to set
the terms for Netanyahu’s visit to the U.S., as the conservative prime minister
is close to Republicans and is set to give an address to Congress on Tuesday
after speaking to the American-Israel Public Affairs Committee on Monday.

The two leaders have had a rocky relationship and displayed
no warmth toward one another during their public exchange of views.

Netanyahu
reiterated his strong opposition to the 1967 borders, saying they would be
“indefensible” during a public conversation with Obama notable both for its
frankness and because the Israeli prime minister seemed at once to be appealing
to Obama directly while speaking to a global audience.

Giving up land Israel won in the 1967 war with several Arab
states would hurt his country’s national security, Netanyahu argued to Obama,
and would not reflect demographic changes that has seen no settlements emerge
in the decades since the war.

Like Obama, Netanyahu expressed hope that Israelis and
Palestinians could reach a peace deal but said such a pact must be “genuine”
and not based on what he called “illusions.”

“We agree that a peace based on illusions will crash
eventually on the rocks of Middle Eastern reality,” he said.

White House press secretary Jay Carney downplayed reports
that Netanyahu was angered by Obama’s speech, saying that the Israeli
government was informed of its contents beforehand and that Obama did not take
a new position with regards to the borders of a Palestinian state.

“I’m not sure that I accept that [Netanyahu] was mad. I
think they had an excellent exchange,” Carney told reporters at his daily press
briefing.

Carney also disputed the notion that the president’s
position is a new one for the U.S.

“I take issue that he moved in any direction on the
issue” of territory,” Carney said. “That is a formulation that has been
understood by parties to these negotiations … for years.”

But Obama was the first president to explicitly state that a
peace deal would be based on the 1967 borders plus land swaps, and they were
viewed by people in both countries as at least a subtle shift in U.S. position.

In an interview with the BBC that aired Thursday night, Obama
said the 1967 borders would not be the only starting point for the talks.

“The basis for negotiations will involve looking at that
1967 border, recognizing that conditions on the ground have changed and there
are going to need to be swaps to accommodate the interests of both sides,” he
said.

He also emphasized the guarantees Israel would need for its
security.

“This was an equally important part of the speech, Israel is
going to have to feel confident about its security on the West Bank and that
security element is going to be important to the Israelis,” Obama said.

Obama said Friday that Israel’s security remains the
“paramount” issue of any peace deal.

Netanyahu underlined the importance of maintaining his
country’s security by recounting the history of the Israeli-Palestinian
conflict and other hardships endured by the Jewish people.

“I can say that even at the nadir of the valley of death,
we’ve never lost hope and we’ve never lost our dream of reestablishing a
sovereign state in our ancient homeland,” he said with Obama sitting at his
side, looking on with concentration. “And now it falls on my shoulders, as the
prime minister of Israel…to work with you to fashion a peace that will ensure
Israel’s security and will not jeopardize its survival.”

Obama’s call for the 1967 borders to serve as a basis for
new talks continued to meet criticism on Capitol Hill, where Sen. Orrin Hatch
(R-Utah) said Friday he would introduce a resolution of disapproval.

Brinksmanship has characterized the relationship between the
two leaders.

In 2009, Obama angered the prime minister by demanding that
Israel halt settlement construction as a precondition to resuming peace
negotiations with the Palestinians.

In March 2010, the last time Netanyahu visited the White
House, the prime minister was not invited to dine with Obama and was refused
press coverage of his meeting.

In addition to the border issue, several substantive issues
loom over potential negotiations.

Netanyahu on Friday reiterated his desire to position
Israeli military forces along the Jordan River, even though that area could be
part of a Palestinian state. Another complication is a pending unity government
between Fatah, the political party that controls the West Bank, and Hamas,
which controls the Gaza Strip but is considered a terrorist organization by the
United States.

‘Israel cannot negotiate with a Palestinian government
backed by Hamas,” Netanyahu said, calling the group “the Palestinian version of
al Qaeda.”

He also brought up the uncertain final status of Palestinian
refugees.

Obama reiterated Friday that the Hamas-Fatah unity agreement
could pose problems for negotiations.

“It is not a partner for a significant, realistic peace
process,” he said of Hamas.

But on Thursday, the president said that concerns about
other issues should not preclude the resumption of peace negotiations.

“I’m aware that these steps alone will not resolve the
conflict, because two wrenching and emotional issues will remain:  the
future of Jerusalem, and the fate of Palestinian refugees,” Obama said. “But
moving forward now on the basis of territory and security provides a foundation
to resolve those two issues in a way that is just and fair, and that respects
the rights and aspirations of both Israelis and Palestinians.”

 — Sam Youngman and Daniel Strauss contributed to this
report.

This story was posted at 2:35 p.m. and updated at 5:22 p.m.