Israel's Netanyahu welcomes Obama U.N. call for talks

JERUSALEM (Reuters) - Israeli Prime Minister Benjamin Netanyahu said Wednesday he welcomed U.S. President Barack Obama's call to resume negotiations with the Palestinians "without preconditions."

"I very much value it," Netanyahu told Israel's Channel 2 television in an interview broadcast from New York, responding to Obama's speech to the United Nations General Assembly.

Obama told the U.N. "the time has come to re-launch negotiations -- without preconditions -- that address the permanent-status issues: security for Israelis and Palestinians; borders, refugees and Jerusalem."

The U.S. leader added that "the goal is clear: two states living side by side in peace and security -- a Jewish State of Israel, with true security for all Israelis; and a viable, independent Palestinian state with contiguous territory."

Netanyahu said "I think this is an important blessing."

"The president said let's come and resume the peace process without preconditions. As you know I have been saying that for nearly six months. I was happy," Netanyahu said.

Netanyahu also said he saw Obama's main message, also from a three-way summit Tuesday with Palestinian President Mahmoud Abbas, as "let's start moving, and stop putting obstacles, as unfortunately the Palestinians have done."

Abbas has demanded Israel freeze Jewish settlement construction in occupied land before peace talks, stalled since late last year, can resume.

Palestinians were disappointed by Obama's roll-back to urging "restraint" in settlement activity in his talks with Middle East leaders Tuesday, rather than the outright freeze he had earlier sought.

"The U.S. administration has retreated from its position at the expense of peace," Mohammed Dahlan, a senior spokesman and former security chief for Abbas's Fatah party told Reuters.

Netanyahu said he also welcomed what he called Obama's "unequivocal support for Israel as the nation of the Jewish people" in his U.N. speech.

Abbas has rejected Netanyahu's call to recognize Israel as the nation of the Jewish people, a demand Palestinians fear could weaken their demand for Palestinian refugees to return to their former towns and villages in what is now Israel.

(Additional reporting by Jeffrey Heller in New York)