Kean Wong:
President George W. Bush has arrived in Israel for peace talks with the Israeli prime minister. But during Mr. Bush's stay the prime minister was faced with a corruption scandal that could remove him from office. This story from Israel.

President George W. Bush arrives in the Middle East to celebrate Israel's 60th birthday and attempt to energize peace efforts complicated by a corruption scandal that could topple Israeli prime minister Ehud Olmert.

[George W. Bush, U.S. President]:
"Our two nations both faced great challenges when they were founded. And our two nations have both relied on the same principles to help us succeed. We built strong democracies to protect the freedoms given to us by an almighty God. We consider the Holy Land a very special place and we consider the Israeli people our close friends, Shalom."

Bush, who faces deep doubt he can secure a deal between Israel and the Palestinians before leaving office in January, headed for Jerusalem where he met with Israeli president Shimon Peres.

[Shimon Peres, Israeli President]:
"We would like to see the Palestinians living together, they suffered a great deal of their lives; the separation. This is a tragedy for them and for the rest of us."

Bush, who was accompanied to Israel by his wife, First Lady Laura Bush, also met with Israeli Prime Minister Ehud Olmert at his residence.

In addition to peace talks, the two were expected to discuss the Iranian nuclear program, which Israel views as a threat to its existence.

Tehran says it wants nuclear technology only to produce electricity.