Olmert vow to quit rattles Mideast peace hopes

JERUSALEM - Prime Minister Ehud Olmert's decision to resign amid corruption allegations and his own plummeting popularity has intensified doubts about Israel's prospects for reaching peace deals with the Palestinians and Syria.

Olmert said Wednesday he would not run in his party's primary election Sept. 17 and would step down afterward to allow his successor to form a government.

But because of Israel's political system, he could serve until well into 2009. Possibly hinting at his expectation of being in power for some time, he pledged to work for peace "as long as I am in my position," and said talks with Palestinians and Syria are "closer than ever" to achieving understandings.

'Self-proclaimed lame duck'
But the internal turmoil could make it difficult for Olmert to close deals with either of them, agreements that long have eluded Israeli leaders.

Israeli political analyst Yossi Alpher said Olmert's resignation would at least slow the process.

"The Arabs are asking themselves how useful an agreement with Olmert would be, because he is a self-proclaimed lame duck and he will have a hard time to get his deals approved," Alpher said.

Palestinian Foreign Minister Riad Malki said Olmert's decision would not change much.

"It's true that Olmert was enthusiastic about the peace process, and he spoke about this process with great attention, but this process has not achieved any progress or breakthrough," Malki said. He said the Palestinians would deal with any Israeli government.

Olmert spoke as his delegation to indirect talks with Syria returned from a fourth round in Turkey. The two sides set another round for August.

Bush pledges continued cooperation
White House spokesman Gordon Johndroe said President Bush called Olmert to pledge his continued cooperation.

Political analysts had been predicting Olmert's resignation for weeks as details of the latest allegations against him dominated the news.

The most damaging inquiry focuses on American Jewish businessman Morris Talansky, 76, who testified he gave Olmert envelopes stuffed with tens of thousands of dollars before he became prime minister, in part to finance Olmert's lifestyle of expensive hotels and fat cigars.

Olmert has never been formally charged with a crime.

The latest allegation is that Olmert double and triple-billed trips abroad to Jewish institutions, pocketing the difference or financing trips for relatives. Other allegations include a shady real estate deal and questionable political appointments — all before he became premier.

On Thursday, an Israeli police spokesman said Olmert would be questioned for a fourth time Friday as part of the investigation.

"Olmert will be questioned on Friday at his official residence in Jerusalem," police spokesman Micky Rosenfeld said.

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