Prime Minister Ehud Olmert said in an interview published Saturday that the inclusion of Yisrael Beiteinu Avigdor Liberman to the coalition would not change government policy, and that he was still open to the prospect of a territorial compromise with the Palestinian Authority. He also likened the threat posed by a nuclear Iran to that of Nazi Germany, and warned that Iran "must start to fear."

The prime minister departed for the United States late Saturday evening.

In the interview with Newsweek-Washington Post, Olmert said he still intended to implement his convergence plan of evacuating certain West Bank settlements, but that the plan had to be reevaluated.

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"After the fighting in Lebanon, and also the failure of the Palestinians to cope with continued terrorist actions, I have second thoughts about the ability to accomplish the two-state solution through realignment," he said. "It is definitely not dead but it has to be reexamined."

Olmert said he still believes in the need for serious dialogue with the Palestinian Authority, "toward the implementation of the vision which I share with President Bush."

When asked about his perception of Palestinian Authority Chairman Mahmoud Abbas, Olmert replied, "He personally has shown consistently his opposition to terror and his discomfort with Hamas techniques. But it is incumbent upon him to do more than just say how uncomfortable he is with Hamas. He hasn't yet shown enough determination and inner strength to put down this government of terrorists and to reduce the influence of [Hamas leader] Khaled Mashal," the leader of the group's political wing, based in Damascus.

On the formation of a Palestinian unity government, the prime minister said he would measure such a regime by whether it accepted in practice, not only in theory, the principles of the Quartet - recognition of Israel, renouncing violence and accepting prior agreements between Israel and the PA.

If such a government abided by these criteria, he said, he would be willing to meet with representatives of a Palestinian government, even those from Hamas.

Olmert said this summer's month-long war between Israel and Hezbollah underscored certain shared interests between Israel and moderate Arab states.

"I'm very impressed with the performance and policies carried out by the King of Saudi Arabia. And the leaders of the [United Arab] Emirates... In the past, the Saudis have expressed some ideas about a possible solution in the Middle East," he said.

"At the end of the day, Iran and the axis of evil made by Iran, Syria, Hezbollah and Hamas is of great danger not only to Israel but to some moderate Arab countries," he added.

The prime minister expressed hope that with the joint efforts of Israel and the United States on one side, and moderate Arab countries on the other, moderate elements within Palestinian society such as Abbas could be strengthened.

When asked how he would respond to U.S. request to release Palestinian leader Marwan Barghouti from prison, Olmert responded, "I am ready to release many, many prisoners... Hamas's extreme inflexible attitude prevents the prisoners from being released because they refuse to let us have our soldier [Cpl. Gilad Shalit]... Hamas is not really interested in the well-being of its prisoners. They want to topple Abu Mazen at any cost."

Asked about the effects of the Lieberman's inclusion to the governing coalition, Olmert said the government's policy would not undergo any major changes.

"The policies of this government are not going to be changed and you can read my lips: I'm ready for territorial compromises, and I haven't changed my mind," he said.

Olmert also likened the threat posed by Iran achieving nuclear weapons technology to that of Nazi Germany.

"This is the first time in many years that the official leader of a major nation with more than 70 million citizens has talked publicly and officially of the liquidation of another nation that is a member of the United Nations. [Iranian President Mahmoud] Ahmadinejad is a man who is ready to commit crimes against humanity, and he has to be stopped," he said.

"My position is clear: If there can be a compromise that will stop Iran short of crossing the technological threshold that will lead them into nuclear capabilities, we will be for such a compromise. But I don't believe that Iran will accept such a compromise unless they have a very good reason to fear the consequences of not reaching it. In other words: Iran must start to fear," he said.

Olmert also expressed his support for U.S. President George W. Bush, saying, he trusts his moral integrity, moral commitment and determination.

"Bush is the last person on Earth who needs to be reminded of what should be done to stop Iran," he said.

"The guideline has to be that this government and the people of Iran must understand that if they do not accept the request of the international community, they're going to pay dearly," he added.

When asked whether he was considering a military option, Olmert replied, "I think my words were clear enough."

Asked for clarification, he said, "It is absolutely intolerable for Israel to accept the threat of a nuclear Iran. I prefer not to discuss the Israeli options. Israel has many options."

The prime minister also characterized the war with Hezbollah was a success.

"I think Israel had a strategic, military and political success. Unfortunately, before the war, we lacked what we thought we had -- deterrence. They were not afraid of starting a fight with us because they thought our reaction would be entirely different. Now if you ask [Hezbollah leader Hasan] Nasrallah if he would want to repeat it, I'm sure his answer would be definitely not," he said.

He added that he had learned from various sources that Hezbollah was close to total surrender, and that the presence of the Lebanese army in the south of the country, along with a bolstered international force, is "very significant," creating "a different reality" to that which existed before the war.

Olmert also expressed skepticism on the prospect of negotiations with Syria.

Asked about his reaction to Syrian President Bashar Assad's muted calls for holding peace talks, Olmert said, "If Assad was serious, he would have stopped his total support of Khaled Mashal, the man directly responsible for daily terrorist actions against Israel. I would be happy to negotiate with Bashar Assad, but on the basis of a certain environment, where you stop your support of terror and of Hezbollah. Assad doesn't show any sign that he's ready to do this."

"I don't expect my enemies to be wonderful guys," he added. "But I want them to come with clean hands when they come to negotiate. Bashar Assad doesn't come with clean hands. When he comes with clean hands, I will talk to him."

Olmert also referred to the ramifications of a "premature" U.S. pullout from Iraq, saying, "America will have to think about the possible ramifications on neighboring Arab countries with moderate governments. How will it affect the stability of these countries against the radical forces that might flourish as a result of a premature pullout."