JERUSALEM - Israeli prime minister-designate Benjamin Netanyahu sought to calm concerns Sunday his incoming government will freeze peace efforts and upset relations with Washington, saying he can work with President Barack Obama to promote peace in the region.
"I intend and expect to co-operate with the Obama administration and to try to advance the common goals of peace, security and prosperity for us and our neighbors," Netanyahu said, ahead of a meeting with visiting U.S. Senator Joseph Lieberman.
"I hope to do so in a unity government."
Netanyahu's comments came ahead of a crucial meeting with his chief rival, Tzipi Livni, in which he aimed to lure her into an alliance.
The meeting was their first since the deadlocked Feb. 10 election. Bringing in Livni would reduce international pressure on Israel and provide more stability to Netanyahu's government. If he fails, he will be forced to team up with ultranationalists in a narrow coalition that could prove unstable, halt peace talks with Palestinians and harm Israel's ties with the new U.S. administration.
The two leaders met for more than two hours and appeared before the cameras separately shortly before midnight.
Netanyahu said he and Livni found many points of agreement and their disagreement could be "overcome with good will."
He did not divulge any details from the meeting.
"If we want to find what unites us, it is possible and it is necessary at times like these," he said.
"I believe this is the will of the people and I think we all have to listen to the voices coming from the people asking for unity at this time."
Livni appeared moments later and said the two were still at odds regarding talks with the Palestinians.
"We didn't reach any agreement. There are deep disagreements on this issue," she said.
"This evening did not progress us on the core issues in a way that we can talk about a joint path."
Both said they agreed to meet again soon.
While Livni supports the formation of a Palestinian state alongside Israel, Netanyahu does not. He has championed an "economic peace" with the Palestinians as an alternative and supported Jewish settlement expansion on the West Bank of the Jordan River that has irked Palestinian leaders.
Livni's Kadima party edged out Netanyahu's Likud in the Feb. 10 election, garnering 28 seats in the 120-seat legislature -- one more than Likud. However, President Shimon Peres has appointed Netanyahu to form the next government because he has the support of a majority of the elected legislators. Netanyahu, a former prime minister, now has six weeks to do so.
Netanyahu is expected to extend Kadima a generous offer that includes Livni remaining in her position as foreign minister.
"Unity can be achieved by dialogue, not by dictates, not by arm-wrestling, but by a real attempt to reach a joint position out of mutual respect, out of real discourse. That's what we will do today," Netanyahu said.
Netanyahu could alternatively form a narrow coalition with relative ease, giving him 65 seats. But that would give his smaller coalition partners effective veto power over major decisions, which could bring down the government in cases of dispute. Such an alliance could also clash with the Obama administration, which has promised to make pursuing Mideast peace a priority.
Regardless, Senator Lieberman said a Netanyahu-led government would enjoy good relations with Washington.
"Our enemies, unfortunately, are as common as the values and the interests that have united us for all these years," he said.
"I have no doubt that with Netanyahu's government here we will have good and positive relations with the Obama administration in Washington and with members of Congress and I look forward to playing my part in contributing to that."
Livni's presence would add immediate credibility to the government but she has said she will join only if Netanyahu agrees to a "rotation" arrangement, whereby each would serve as prime minister for half of the government's four-year term. Netanyahu rejects the notion.
After Peres appointed Netanyahu to construct the next government, Livni said she would refuse to serve as a "fig leaf for a government of paralysis" that did not work to promote peace.
Speaking to her Kadima faction on Sunday, Livni seemed eager to assume the role of opposition leader.
"The choice is between hope and despair, between promoting and implementing the vision of two states for two peoples and between a lack of direction in that field," she said, adding if Kadima compromised its platform to join the government, it would be "betraying the trust of the public."
Earlier Sunday, Ehud Olmert, Israel's outgoing prime minister, called on Netanyahu to form a "strong, stable government" quickly. He said negotiators should "conduct things in an effective and fast way in order to establish, as quickly as possible, a government that will enjoy full authority and will be able to rule effectively."
Olmert continues in a caretaker role until Netanyahu can form a new ruling coalition. The new parliament will be sworn in Tuesday.
