Obama in Israel: Settlements "counterproductive" to peace He urged Israelis to recognize "the Palestinian people's right to self-determination"

JERUSALEM (AP) — President Barack Obama delivered an impassioned appeal Thursday for Israel to recognize that compromise will be necessary to secure peace and lasting security for the Jewish state.

Telling an audience of university students that the United States is their country's best friend and most important ally, Obama said the U.S. will never compromise in its own commitment to Israel's defense, particularly against threats such as the one posed by Iran and its nuclear program.

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But he also stressed that Israel must make peace with the Palestinians if it is to ensure its survival and long-term viability as a homeland for the Jewish people. Israeli occupation of areas that the Palestinians claim for their state must end, he said.

"The Palestinian people's right to self-determination and justice must ... be recognized," he said. "Put yourself in their shoes - look at the world through their eyes. It is not fair that a Palestinian child cannot grow up in a state of her own, and lives with the presence of a foreign army that controls the movements of her parents every single day."

Obama made no explicit demands of Israel but said its people should understand that specific actions, notably ongoing construction of Jewish housing on disputed territory, can hurt the chances for restarting stalled peace talks with the Palestinians, who have made a halt to such building a demand for returning to negotiations.

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"Israelis must recognize that continued settlement activity is counterproductive to the cause of peace, and that an independent Palestine must be viable — that real borders will have to be drawn," Obama said.

Earlier Thursday in the West Bank, standing alongside Palestinian President Mahmoud Abbas, Obama made similar comments but essentially abandoned his previous support for the Palestinian demand that settlement activity end before talks resume.

Obama said the United States continues to oppose the construction of Jewish housing on land claimed by the Palestinians but stressed that issues of disagreement between the two sides should not be used as an "excuse" to do nothing.

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"If the expectation is that we can only have direct negotiations when everything is settled ahead of time, then there is no point for negotiations, so I think it is important to work through this process even if there are irritants on both sides," Obama said at a joint news conference with Abbas in Ramallah.

Abbas and other Palestinian officials said they would not drop the demand, noting that much of the world considers the settlements to be illegal and not merely an impediment to peace talks.

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"We require the Israeli government to stop settlements in order to discuss all our issues and their concerns," Abbas told the news conference, a marquee event during Obama's brief visit to the West Bank on the second day of his Mideast visit. "It's the duty of the Israeli government to stop the settlement activities to enable us to talk about the issues in the negotiations."

During his first four years in office, Obama had sided with the Palestinians on the issue. He and his surrogates repeatedly have demanded that all settlement activity cease. However, when Israel reluctantly declared a 10-month moratorium on construction, the Palestinians balked at returning to negotiations until shortly before it expired and talks foundered shortly thereafter.

The Palestinians want a state in the West Bank, Gaza and East Jerusalem — territories Israel captured in the 1967 war — but are ready for minor adjustments to accommodate some settlements closest to Israel. Since 1967, Israel has built dozens of settlements in the West Bank and East Jerusalem that are now home to 560,000 Israelis — an increase of 60,000 since Obama became president four years ago.

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Obama's comments in Ramallah echoed those of Israeli Prime Minister Benjamin Netanyahu, who has repeatedly called for the Palestinians to drop preconditions for re-launching the stalled peace talks. Obama's remarks were sure to reinforce deep skepticism among Palestinians about whether he is willing or able to use U.S. influence to push Israel on key issues.

In what appeared to be an attempt to blunt such criticism, Obama used his speech to the Israeli students to appeal to their love of freedom, respect for human rights and common values with Americans to do the right thing.

He offered profuse praise for Israel's history as a haven for refugees fleeing social and religious persecution. He hailed the technological innovations made by Israeli scientists and engineers.