WASHINGTON - Prime Minister Ehud Olmert said Tuesday that the new Palestinian Authority government headed by Salam Fayad "deserves to be given both a chance and assistance."

Olmert made the comments following a series of meetings at the White House, including a face-to-face meeting with U.S. President George W. Bush that lasted nearly two hours.

The prime minister added that he intends to bring the release of withheld PA taxes to the government for its approval in principle during the weekly cabinet meeting Sunday.

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In addition, Olmert said during a closed session with reporters that Israel would agree to steps that are "more far-reaching" regarding the removal of checkpoints in the West Bank, the loosening of restrictions on Palestinian travel, and assistance to security forces that are loyal to Abbas.

Regarding the Gaza Strip, Olmert said Israel would "provide all that is necessary to meet the humanitarian needs, and we will not be apathetic about them."

"This suffering is being caused by Palestinians to their own people," he added.

The prime minister addressed the issue of the Gaza refugees seeking entry into Israel, saying "there is no reason why at the end of the day all those who we check out and determine are not embedded terrorists should not be allowed to enter."

"These are the instructions, and they will be carried our, even if it takes a little time," he added.

Bush said Tuesday ahead of the meeting with Olmert that U.S. mediation is not required in order to restart peace talks between Israel and Syria.

"If the prime minister wants to negotiate with Syria he doesn't need me to mediate ... it's up to the prime minister," said Bush during a joint press conference with Olmert. "This man is plenty capable of having negotiations without me mediating."

Olmert for his part played down the prospects of resuming peace talks.

"The Syrian leader said that he is against any precondition on the Israeli side but he is certainly for preconditions on the Syrian side," said Olmert. "I'm not certain that the understanding of the president of Syria can lay the foundations for immediate discussions."

Bush, reaffirming a vision of a Palestinian state alongside Israel, said he hoped to bolster Palestinian Authority Chairman Mahmoud Abbas against Hamas Islamists who now control Gaza.

"Our hope is that President Abbas and Prime Minister [Salam] Fayad - who is a good fellow - will be strengthened to the point where they can lead the Palestinians in a different direction." Bush said.

"We share a common vision of two states living side by side in peace," Bush said, promoting what he called a "common strategy to fight off" extremists in Gaza.

Bush also slammed Hamas' takeover of the Gaza Strip. "They made the choice of violence," Bush said. He said that "Abbas is a voice that is a reasonable voice amongst the extremists in your neighborhood."

Olmert has said he was open to conciliatory moves toward Abbas, who dismissed the Hamas-led government and formed an emergency cabinet of Fatah loyalists in the West Bank as a counterweight to the Islamists' control of Gaza.

"I'm going to make every possible effort to cooperate with him," the prime minister said. "Like you, I want to strengthen the
moderates." He said it was vital to strengthen security for Israel.

"There's no question that I want to talk to the president of the Palestinian community," continued Olmert. "I will be talking to him."

But the prime minister outlined several conditions for progress toward peace, including "a much more responsive Palestinian government and increased security efforts."

Olmert also said that he wanted to discuss the threat posed by the Iranian nuclear threat.

Bush replied that he views Iran's statements as "a serious threat to Israel."

"All options are on the table to make sure Iran does not develop a nuclear weapon," the president added.

"Iran must see that there is a price to be paid for this kind of intransigence," he continued.

The meeting comes a day after the European Union and the United states lifted their boycott of the Palestinian Authority and decided to resume relations and aid transfers.

Also Tuesday, China expressed support for Abbas' new government, the latest international affirmation for the government established after the Hamas takeover of the Gaza Strip.

"We support the establishment of the national unity government," said Chinese Foreign Ministry spokesman Qin Gang.

"The Chinese government and the Chinese people have all along supported the just cause of the Palestinian people," he said. "As long as it is in the legitimate rights and interests of Palestinian people, we will support them firmly."

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