What has happened to King Abdullah of Saudi Arabia's 2002 peace plan, which called for full peace between the Arabs and Israel in return for withdrawal of Israel from all lands captured in 1967?

There is a different interpretation of the 2002 plan. It was a take it or leave it (plan). Many of the principles that are included in it are acceptable to us. That does not mean that we do not have a right to make here and there a proposal or a counter-proposal. Most of the points are agreeable and some others are bridgeable. It is a walking proposition not a jumping proposition.

Last year President Bush predicted a Middle East peace agreement by the end of 2008 – that seems unlikely?

Yes (it is unlikely). You see, many things happened in the meantime. Time was short. All of us changed. The obstacles are clearer than ever before.

So the international community is in a more difficult place now than a year ago?

No, identifying a danger is the beginning of solving it. There is a world crisis, but there is also an opportunity. There is a feeling that we have to look afresh.

How might Barack Obama's election change the situation?

This is the beginning of the end of racism. A black man reaching the top position is the strongest answer to Hitler. It is the political equivalent of the black runner (Jesse Owens) who won the gold medal in 1936. No one looked at the colour of his leg or the colour of the sportsman, they measured his speed. The capacity of America to renew itself is a welcome surprise. Obama was elected by the American people, but he was chosen by the world.

What about his position on Iran, he has said he would like to talk to them, is that a real possibility?

If there will be a united policy on Iran and there is a new (lower) price for oil, then Iran will have to come to terms to a proportionate reality of our times. They have been behaving out of proportion. Dialogue should not just be just by words but by deeds. If you hang only on the tongue then I am not sure dialogue will produce more than speeches. If Iranians feel there is a body politic behind it (the push for talks) and they cannot just escape by sending Ahmadinejad to spread quick wisdom then there is a chance. They have to stop three things: they have to stop trying to control the Middle East, through supporting Hezbollah in Lebanon and Hamas; the second to stop terror, to be the centre of terror, the financing of terror and so on; and third stop the combination of nuclear warheads missiles and threats. As a way of example, if Switzerland were to build a nuclear bomb, we would not be necessarily alarmed. But I would not say Ahmadinejad has a Swiss temperament.

What about Syria?

Syria has a chance and has a dilemma. I think Israel is ready to make peace with Syria and pay the cost. The dilemma is that they can't be at the same time in the peace camp and in the Iranian camp. Peace is a choice, not a cocktail.

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