Embattled Olmert vows to lead peace drive

By Ori Lewis

JERUSALEM (Reuters) - Prime Minister Ehud Olmert on Saturday vowed to stay in office and lead peacemaking efforts with Israel's "enemies and adversaries" despite speculation he could be forced to quit in a bribery scandal.

The Israeli leader is under a police investigation. He denies wrongdoing in his ties to an American businessman.

On Thursday Olmert said he would resign if indicted, a move which would be a setback to U.S. President George W. Bush's effort to secure a peace accord before he steps down in January.

But in a speech to the young guard of his centrist Kadima party at a gathering near Tel Aviv, Olmert said he would lead efforts to ensure Israel's security.

"We want to lead the State of Israel to a situation where it can ... put an end to the bloody conflicts which have accompanied our life in this country since its establishment and even beforehand.

"It is our agenda and ... we will not relent, we will work for it with all our strength, I will lead it because there is no other option."

He made no mention of the bribery investigation dominating headlines in Israeli media.

Olmert said Israel would continue to battle rocket barrages from the Hamas-controlled Gaza Strip and warned that militants, to whom he only referred as "the other side" would suffer a "painful and harsh blow" as long as attacks continued.