Channel 1: Your Majesty, we are flattered to have this first interview with you on Israeli television. If I may kick off on a sort of a personal note: I was watching the other day a military exercise here in Jordan in which you have participated. You sort of went to try some of the weapons there, and I couldn't avoid the feeling that sometimes you are missing the old days, your old days in the military, in the commandos.

King Abdullah: Very much. It was an exciting life that I'd spent, twenty years almost with my soldiers in the field. This office keeps me farther away from the contact with the soldiers that I grew up with, and I miss that life very much.

Channel 1: And you are not allowed any more to parachute.

King Abdullah: Well, I'm not allowed to, but I'm still trying to see whether I can get a jump snuck in one place or another. But it is very, very difficult. And I'm sure that my good friend the Prime Minister also feels the same way, that this high office is a much more difficult job and the old life of being in the army I found much simpler, and much more enjoyable, to be quite honest.

Channel 1: If I may ask, when did you realise that you were not going to carry on with your successful military career, and will have to burden some different, enormous, responsibility as king of Jordan?

King Abdullah: Well, I still had hope for a military career even when His Majesty went back to Rochester [Minnesota] for the last time, because his instructions were quite clear when he'd made me crown prince that he still wished me to carry on a military career. And, you know we felt that such a great man would not succumb to such an awful disease. So, even in our minds I think there was denial at that stage - that he would survive - and I believe it hit me when we realised that there was no hope, when the transplant operation was not successful and that His Majesty was coming back for his last days to Jordan that my army life was over then and there.

Channel 1: Did you have the chance to discuss the office of a king with your late father?

King Abdullah: Well, we had discussed the problems of Jordan many, many times beforehand, and I had some wonderful opportunities to sit with him when he was getting treatment in the United States. I spent a few days with him in London before he came back the first time from Rochester. We had a very short period of time when he announced that he wanted me to be crown prince. There were so many questions on my mind and I had to deal with the ones that I thought were the most important, and I wish I had much more time because there are so many more questions I would have liked to have asked him.

Channel 1: Did it come as a surprise for you?

King Abdullah: I think the indicators were there, especially in the final days, but when somebody does confer that responsibility to you it still becomes a shock and it was still a surprise to me.

Channel 1: Your Majesty, this is your first royal visit to Israel, and I am wondering why did it take some time before you have decided to take this step?

King Abdullah: Well, we had worked out with Prime Minister Barak on several occasions, where we said from day one that we had hoped that my visit to Israel would be a visit to promote peace. We are very sensitive of other peoples' points of view. We realise that there were intense negotiations on the Palestinian track. We had worked very quietly behind the scenes hoping to push the Syrian track across. I didn't want our visit to Israel to be used in such a way where it didn't promote peace and that was reason for one of the delays. We had planned to come several months ago but the situation in the region delayed that trip unfortunately.

Channel 1: Are there any special obstacles that you can see now hindering or slowing down the development of bilateral relations between Israel and the Hashemite Kingdom?

King Abdullah: Well, to be honest, I think that we are speeding up the process now. There were several years when I think our bilateral relations came to an impasse, but I know that the Prime Minister has dedicated a lot of his effort to try and speed up the cooperation between our two countries, not only on the areas of trade, but licensing, of getting not only better cooperation between the public sectors but also between the private sectors. I was amused to find out this year, as difficult as I am on our government, the bureaucracy in Israel I think in some areas is slightly worse than ours.

Channel 1: Right you are.

King Abdullah: This is one of the problems that we've faced. And sometimes the issue of security creates a stumbling block, sometimes bigger, I believe, than it should be. However, from day one, the prime minister has been very, very aggressive with I believe his government in trying to push the bilateral relations as quickly as possible.

Channel 1: So, Your Majesty, would you expect a speeded-up solution of such issues as the airport in Aqaba serving Eilat, the use of the new Aqaba Port by Israel in order to take advantage of mutual interest?

King Abdullah: Absolutely, I believe that we have so many people on both sides that are really moving as quickly as possible to break down these barriers, and I think these things will happen very quickly this year. And again, there is the willingness on the leadership level on both sides and that's the important thing.

Channel 1: Your decision that your economic council took for a new economic structure in Aqaba - can it impact the relation with Israel and promote Aqaba regionally?

King Abdullah: Absolutely, not only it would impact greatly Jordan and the Jordanian economy and the way we do business here, but also will affect our neighbours and we are talking about a new phase of existence between our two countries. What is going to happen in Aqaba where you give more word to the private sectors and the other people can move the country forward? Naturally, the private sectors in the countries will start to come together. I think what is happening in Aqaba will be a new phase in this area.

Channel 1: You are lowering taxes.

King Abdullah: Yes and a whole new series of initiatives.

Channel 1: Now if I may switch to the Palestinian issue. The Hashemite Kingdom has often expressed its view that vital Jordanian interests are involved, sort of interwoven, in the final-status negotiations between Prime Minister Barak and Chairman Arafat. Would you care, Your Majesty, to clarify those interests that Jordan has in the final-status arrangement?

King Abdullah: We have many issues that are of concern to Jordan, obviously. We have all the respect for the Israelis and Palestinians to continue into final-status negotiations. But if we look at a series of issues that affect us on a day-to-day basis: security for example, and borders. This is something that affects us immediately. Water is a bilateral, trilateral, regional issue. When we look at refugees and Jerusalem, again these are issues that are very close to the Jordanian heart and therefore of interest to our society.

Channel 1: A sensitive issue, do you see issues dealt with in a trilateral form: Jordan, Israel and Palestinians?

King Abdullah: If we are asked on trilateral issues, yes we would be more than happy to step in. We believe that these issues are for the both Israelis and the Palestinians to resolve. We, in Jordan. have always felt that we should be there for both parties and if we were asked to come in trilaterally, we would be ready to do so but be sensitive to both Israelis and Palestinians.

Channel 1: How do you make sure that Jordanian interests are kept by both Palestinians and Israelis when they try to resolve their own differences?

King Abdullah: I think Jordan's stand, based on the great legacy left by His Majesty the late King Hussein, shows that the Jordanian position has always been there to support what will achieve better conditions for all of us. I believe that both the Palestinians and the Israelis respect our traditional role, and I believe that we can positively influence any discussion that has to be settled in the future.

Channel 1: Who would represent the Palestinians who are citizens of Jordan but also have a refugee status? Who will take care of their interests?

King Abdullah: Well, I believe that as we said on this issue, we look at Jordanians being one family. And Jordanians of Palestinian origin, I believe, are my brothers and sisters. They are my people, we are one nation. And I think that Jordan is strong enough for those Jordanians of Palestinian origin to be able to represent themselves if they need to on issues of the future stability of this region. And I hope that this is why the importance of the core issue of the peace process - the Palestinian-Israeli issue - moves as rapidly as possible.

Channel 1: There were recently some calls by prominent Jordanian personalities for a more participatory role by Jordanian Palestinians in political life, including a person who used to be your political adviser, Mr. Adnan Abu Odeh. What is your reaction to this trend?

King Abdullah: Well, I believe, Sir, that we are going into a sensitive area of our development at the moment. We have prioritised as number one priority for Jordan the economy because with a weakened economy we cannot have a good, strong, stable Jordan. A good, strong, stable Jordan allows us to be able to deal with many of the issues that are important and close to our hearts. So, at this very difficult juncture of our history, I think, as we get ourselves on our own two feet, there are those elements that want to create other problems. Our problem is that of the economy and people try to create maybe some areas of sensitivity when it comes to people's insecurities. I think that our record shows in the past year that there has been a very strong balance of Jordanians of Palestinian origin and Jordanians of Jordanian origin taking very important posts across our country.

Channel 1: The declaration of principles between Israel and Jordan granted Jordan recognition of a special role, a special status in Jerusalem. Later on, we had some statements by Jordanian officials as if Jordan was willing to relinquish its role over the holy places in Jerusalem in favour of the Palestinian Authority. What is your position on that?

King Abdullah: I think our position is very clear about this. Jordan is the custodian of the Holy Shrines in Jerusalem. We believe that as we move into a new phase, I think of our lives in this region, that we have to look at the world in a different mind. We believe that Jerusalem at the political level is big enough to encompass two capitals, an Israeli one and a Palestinian one. When it comes to Jerusalem itself, the holy city of Jerusalem, if we want to have a true settlement and true peace, which is the symbol of hope for our region and the world, the I think it is very, very important that Jerusalem is a city that is open for all.

Channel 1: Your Majesty, you have played a role in trying to bring together, in trying to bring closer President Assad of Syria and Prime Minister Barak in the hope that we can conclude a peace treaty with Syria and resolve some of the other issues. Now, after Geneva and the negotiations breakdown, what is your assessment? Do we still stand a chance?

King Abdullah: I believe, Sir, that we do stand a chance. I believe that the door is open on both sides. And I believe it's imperative that we look at this situation with great optimism. We're on the threshold of a new beginning here in the Middle East. Not only on the Palestinian, but also the Syrian track. And I think that we, all of us in the international community, must do all that we can to keep that hope alive. We are looking at total peace; this is our hope, a new beginning for the Middle East. And I believe that when both sides look at the most important issue when they come to discussions on the Syrian-Israeli track, it is peace itself; and sometimes I think when we get into negotiations we lose the sight of the big picture. We want peace and stability, and therefore that door must be kept open and we must keep trying.

Channel 1: Do you have any reason to be optimistic on the Syrian track?

King Abdullah: Well, we have heard recently some very positive signs from both the Israeli and the Syrian camp. Until the doors are firmly shut, I think that it would be a tragedy if we give up, so we have to continue to hope. There is room to manoeuvre still, and we shouldn't lose that opportunity.

Channel 1: If Israel is sort of forced to withdraw unilaterally from Lebanon, one of the questions will be what would be the reaction of the Arab world, including Jordan. What would amount in Jordan's view to a complete, comprehensive withdrawal from south Lebanon and the implementation of Security Council Resolution 425?

King Abdullah: I think that move would be positive, but again, if we are talking about withdrawal, we have to make it a complete and total withdrawal. If it is only a partial withdrawal with outposts, then we have not solved the situation. If we are looking for the high moral ground here, I believe that total withdrawal is what we are talking about, and I think it would have a very positive reaction.

Channel 1: And then what would be the reaction of the Arab world in case some groups in Lebanon, triggered by this or that party, are trying to carry on military operations across the border?

King Abdullah: Well, this is a threat that faces us all. And I believe that when we talk about armed action that affects the peace process, we have to understand that the closer we come to peace, the more I believe that there will be those extremists that realise they are losing their opportunities, that are going to try and create problems for us. Will we take casualties in the fight of peace? Unfortunately, I think we might. But those that have fought and died for peace - is that going to be in vain? So, I think that we have to have this courage, especially at the last phase, of a new future in the Middle East. I hope to God that the situation and the process continue to move smoothly. Human nature being what it is, unfortunately, maybe there might be incidents. But are we going to let a small group of extremists that want to destroy the type of world that we want, win, or do we have the courage to see ourselves through to a future of peace and stability in our part of the world?

Channel 1: A final question, with your permission, Your Majesty. We had ups and downs over the years in relations between the King of Jordan and whoever was the Prime Minister at the time in Israel. How would you characterise your working relationship with Prime Minister Barak?

King Abdullah: Terrific. I think that from day one, we have had a wonderful working relationship. He is a man that I admire greatly; a courageous man that I believe is shouldering a tremendous responsibility on his shoulders. What he is trying to do not only for Israel but for this region, I think, is a tremendous responsibility, and I believe that all of us have to give him our full support. A man of courage that was elected by the Israeli people in a landslide victory for peace, and for those that do create some difficulties for him inside Israel, I think we have to remember that being the man at the top, in charge of that mandate, is a tremendous responsibility. And I hope that all of us give him the support to see through to the type of peace that we want in this part of the world.

Channel 1: Thank you very much, Your Majesty.