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Peres visits Benedict XVI
By The Associated Press

ROME - Pope Benedict XVI and President Shimon Peres discussed peace efforts in the Middle East yesterday, with the Vatican saying the time seemed particularly favorable for Israelis and Palestinians to work to end decades of conflict.

Peres renewed an invitation to Benedict to visit the Holy Land during the meeting at the pontiff's summer retreat at Castel Gandolfo, in the hills south of Rome, a Vatican statement said.

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Shortly after the meeting, Benedict held talks on the Middle East situation with the Saudi foreign minister, Prince Saud al-Faisal.

It wasn't clear if the timing was a coincidence, but the meetings, which followed one between the pope and the Syrian vice president on Wednesday, came amid a flurry of diplomatic initiatives on the Middle East.

A Vatican statement said the pope and Peres discussed recent talks between the Israeli and Palestinian leadership. It said the two expressed hope that both sides would take advantage of the current international context that seems particularly favorable, and make any effort to respond to the expectations of the people, worn down by a crisis that has lasted for 60 years.

The Holy See and Israel established diplomatic relations in 1993. However, a long-standing tax dispute has ruffled relations between the two sides, and is seen by Israel as the main obstacle to wider cooperation. The issue was raised in Peres' talks yesterday. The Vatican is seeking ways to lessen its tax burden on its significant land holdings in Israel.

This weekend Peres travels to an international political and finance conference on Lake Como, which annually draws world leaders, including statesmen from Arab countries.
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