His Majesty King Abdullah on Wednesday discussed with German Chancellor Angela Merkel prospects of further cooperation between the two countries and regional developments, especially efforts to push the Middle East peace process forward.

At a summit meeting with Merkel, the third during this year, talks focused on Jordanian-German economic ties and possible cooperation between the Lower-Middle Income Countries Initiative (G-11), chaired by Jordan, and the G-8, whose rotating presidency is currently held by Germany.

In a press conference following the two-way talks, King Abdullah expressed his appreciation for the German role in supporting national economy, in addition to its support for the G-11 countries.

The King expressed belief that with Germany's support, the two groups will move to achieve their shared vision.

King Abdullah, who returned home later Wednesday, also expressed appreciation for the German role in solving regional issues and boosting the Mideast peace process.

His Majesty voiced hope that all core issues related to the Middle East conflict would be discussed at the international peace meeting at Annapolis, expected to be held later this month.

The King has frequently called for the inclusion of final status issues, such as the fate of Jerusalem, borders and refugees, on the Annapolis agenda.

The King pointed out that his talks with the chancellor covered other issues, including the situation in Lebanon and Iraq.

Merkel, for her part, thanked King Abdullah for his “relentless efforts to achieve peace and stability in the Middle East”.

On bilateral ties, she referred to her country's efforts to improve Jordan's economy, especially concerning the debts Jordan owes to the Paris Club.

Merkel said she discussed with King Abdullah, in his capacity as chairman of the G-11, the challenge poised by soaring international oil prices on the G-11 countries as they pursue development and stability.

The German chancellor said she will submit a report on the outcome of regular contact with the G-11 countries to Japan, the next president of the G-8. She underlined the importance of pursuing these discussions, especially as a list has been compiled of issues of common interest between the G-8 and the G-11 members.

Such approach to cooperation between the two groups, she said, will help them achieve progress step by step, ending up with a solid and stable relationship.

On economic cooperation between Jordan and Germany and ways to boost German investments in Jordan, the chancellor said she realises that the Kingdom offers abundant opportunities for investors.

Although the German government has no authority to tell the German business society where to invest, it can still point to the countries that have good investment potential, including infrastructure and renewable energy projects.

King Abdullah said 2008 would witness a new chapter in cooperation between the Jordanian and the German business sectors. Jordan is interested in renewable energy, especially wind energy, he said, noting that there are opportunities for German businessmen to invest in energy, water, railway and infrastructure projects.

His Majesty pointed out that he would follow up on the issue of dual taxation to provide a better investment environment for both countries.

Regarding the US-proposed international peace conference, the King and Merkel expressed hope that the meeting would be successful in dealing with core issues and subsequently bring about regional stability.

Following the meeting with Merkel, the two sides issued a joint statement regarding the issues on the agenda.

Also on Wednesday, King Abdullah met in Berlin with Chairman of the Foreign Affairs Committee at the German Bundestag Ruprecht Polenz and committee members, with whom he discussed bilateral ties and developments in the Middle East.

During the meeting, King Abdullah underlined efforts to push the peace process forward and realise a just and lasting peace through a solution to the Palestinian issue.

The King voiced Jordan's appreciation for the German role in supporting these efforts and helping the parties prepare the stage for a successful peace meeting in the US, which, he said, should lead to a solution to final status issues and the creation of an independent Palestinian state.

King Abdullah said the coming months will be decisive in the history of the Arab-Israeli conflict, saying if a solution is found to the Palestinian issue, which is the core of conflicts in the region, the rest of the issues in the region will be resolved.

On bilateral ties, the King stressed his keenness to enhance these relations in various fields.

Discussions also covered the situation in Iraq, where they stressed support for efforts seeking to preserve the unity of Iraq and its stability.