Netanyahu supports Arab peace initiative

JERUSALEM, July 24 (UPI) -- The Saudi peace initiative created the atmosphere and spirit to achieve a comprehensive peace deal, Israeli Prime Minister Binyamin Netanyahu said.

Speaking Thursday at the residence of Yasser Reda, Egypt's ambassador to Israel, at a reception marking Egypt's national holiday, Netanayhu said he hopes a peace deal with the Palestinians will eventually lead to a broader regional peace deal.

The prime minister praised Egyptian President Hosni Mubarak for his "efforts to ward off the radical forces and push towards peace," The Jerusalem Post said. Egypt is Israel's cornerstone for peace with its neighbors, Netanyahu said.

The 2002 Saudi peace plan supported by all 22 members of the Arab League calls on Israel to withdraw from all land seized in the 1967 Six Day War including the Golan Heights, the establishment of a Palestinian state with east Jerusalem as its capital and a just solution to the Palestinian refugee problem.

In exchange the Arab countries said they would establish normal ties with Israel and call an end to the Israeli Arab conflict.