G8 leaders issue urgent call for Mideast peace

By Shada Islam and Leon Mangasarian Jul 16, 2006, 16:41 GMT

St Petersburg - Leaders of the G8 industrial nations on Sunday issued a joint appeal for Middle East peace in a bid to halt escalating violence in the region.

German Chancellor Angela Merkel said the Group of Eight (G8) was asking terrorists to stop attacks on Israel and to set all Israeli hostages free. The statement also called on Israel to halt military strikes on Lebanon, said Merkel.

No further details of the statement were immediately available.

Diplomats said leaders had debated the issue - and the wording of the final text - for over almost four hours. No aides were present during the discussion.

The G8 states are Britain, Canada, France, Germany, Italy, Japan, Russia and the US.

The rapidly worsening Middle East crisis is dominating the G8 summit in the northern Russian city of St Petersburg, with leaders urging the warring parties to exercise restraint in order to prevent an all-out war.

For most of Sunday, however, summit participants were split on whether to call for a ceasefire, with the US insisting the focus must be on finding a long-term end to hostilities in the region.

US President George W Bush repeatedly deflected questions about whether he backed such a truce and instead put the blame on Syria, Iran and Hezbollah which is holding two captured Israeli soldiers.

However, Russia and most European leaders put the onus on Israel to stop the use of disproportionate force.

French President Jacques Chirac called for 'a show of moderation on the part of all parties...so that we can establish the conditions of a long-lasting, lasting cease-fire in the region.'

Lebanese Prime Minister Fouad Seniora's appeals for an immediate ceasefire were also backed by other European leaders.

Over 100 people, including children, have been killed since Israeli forces started pounding Lebanon five days ago. A Hezbollah missile attack killed nine Israelis in Haifa on Sunday.

President Bush held separate talks on the spiralling violence with British Prime Minister Tony Blair and Chirac.

The US leader continued to robustly back Israel's right to protect itself.

'All sovereign nations have the right to defend themselves against terrorist attacks,' Bush said after talks with Blair.

Nevertheless, for the first time Bush toned down his blanket support for Israel by adding: 'We hope that there is restraint as people respond...our message to Israel is defend yourself but be mindful of the consequences.'

Divisions on the Mideast in the elite club had dimmed hopes of any strong initiative to halt the bloodshed.

Other global flashpoints under G8 review include Iran, North Korea, Iraq and Afghanistan. Putin presented a report on fighting international terrorism.

In other business, the summit agreed new energy guidelines in reaction to volatile oil prices and rising global energy demand.

A 12-page non-binding statement called for measures to ensure transparent, open and competitive energy markets.

Significantly Russia, which provides 25 per cent of Western Europe's natural gas supplies, signed up to the deal. Moscow had initially voiced reservations about committing itself to opening up its energy sector state monopolies which are a mainstay of the Russian economy.

The compromise reflects calls by Western energy companies to be allowed to invest in Russian energy markets as well as Moscow's drive to acquire Western energy infrastructure facilities.

The paper admits there is no unity within the G8 over nuclear power.

The US, Russia, Canada, Britain, France and Japan are all intent to continue or expand their reliance on nuclear power. But Germany plans to close all its nuclear plants by 2021 and Italy has already done so.

The summit also agreed to fight high-level corruption and combat piracy and counterfeiting.

G8 leaders vowed to boost education and innovation and step up efforts to monitor infectious diseases and boost preparedness for human pandemics fuelled by fears of bird flu.

However, no new funds were committed for such actions.