By Alastair Macdonald and Jeffrey Heller
JERUSALEM, Sept 20 (Reuters) - Israeli Prime Minister Ehud Olmert confronted critics within his own party who fear he may concede too much to Palestinians and urged them on Thursday to seize an opportunity to make peace after 60 years of conflict.
Addressing his centrist Kadima party hours after the latest round of meetings with U.S. Secretary of State Condoleezza Rice, Olmert said he would free more Palestinian prisoners as part of "measured gestures" toward President Mahmoud Abbas as they try to agree terms for a U.S.-sponsored peace conference.
Rice said Olmert and Abbas had come a "very, very long way" since she hosted a frosty meeting between them last February in Jerusalem and she was optimistic Palestinians and Israelis would agree to a joint document on the tough issues that divide them before the conference.
"There is clearly a kind of focus and commitment on the part of both of the leaders as well as the people who are working most closely with them to try and get this document done," Rice told reporters before a refuelling stop in Shannon.
During a 36-hour diplomatic push, she assured Abbas the gathering pencilled in for November near Washington should put the Palestinians firmly on the path to statehood.
Olmert has been accused in Israel, even by some allies, of preparing to achieve that by handing over parts of Jerusalem and the occupied West Bank, known to Israelis as Judea and Samaria.
In remarks going to the heart of problems all Israeli leaders have faced in winning support for peace moves, Olmert told a noisy party conference: "I know the reigning opinion in some circles is that we need to wait ... that we mustn't rush or nurture an atmosphere that will lead to serious negotiations.
"Those who think that always find excuses ... to avoid seizing opportunities and not look for real chances to break the ice between us and the Palestinians. I do not share this view."
He noted the continuing hostility of Hamas and contrasted that to Abbas's new government in the West Bank, which has reopened discussions with Israel following the Islamist group's violent seizure of the Gaza Strip in June.
In Washington, the White House said that President George W. Bush plans to meet Abbas in New York on Monday to "continue discussions on helping the Palestinian Authority and on issues related to an eventual two-state solution of Israel and Palestine living side by side in peace and security."
"HORIZON OF HOPE"
On the eve of the Jewish state's most solemn public holiday Yom Kippur, Olmert noted the rifts in public opinion but vowed to stick to Kadima's electoral commitment to peace talks.
"I don't aim to foster a split among us or in the Israeli public. I know the future of Judea and Samaria reaches deep into our soul and that differences among us can tear apart the most delicate and vital fabric of our life," he said.
"But I pledge to do my utmost to expand the horizon of hope for a better life and a future of peace and security for the people of Israel."
A government official said more than 100 Palestinians, mostly members of Abbas's secular Fatah faction, would be freed, adding to 250 released in July. Some 10,000 remain in jail.
Olmert laid out a cautious programme for further meetings to build support for the international conference.
Some analysts question his ability to win Israeli support for major concessions. Some also question the prime minister's will to conclude any deal, arguing he may see benefit in prolonging the process to fend off domestic opposition and pressure from Washington for Israel to aid the Palestinians.
Palestinians complain that Olmert's offer to work out a joint declaration of principles on steps to statehood does not go beyond previous peace efforts and Abbas repeated on Thursday he wants the meeting to set a timeline for settling core issues.
"A timeline isn't wise at this point, but we will see if one is helpful later," Rice said. "It is clear that they are going to address the core issues that relate to the establishment of a Palestinian state." (Additional reporting by Mohammed Assadi and Sue Pleming in Ramallah/Shannon, Adam Entous and Ari Rabinovitch in Jerusalem and Jeremy Pelofsky in Washington)
