Davutoğlu's remarks came after recent tension over Israeli offensive against Gaza. Turkish Prime Minister Recep Tayyip Erdogan reacted harshly to Israel, accusing it of acting disproportionately. In response to Erdogan, Israeli foreign ministry issued a statement on Monday to protest Erdogan's remarks which also strained ties between the two countries.
"When Israel follows a policy of peace, we have good relations," Davutoğlu told an interview with the British daily, The Guardian.
Before Gaza, Turkey had mediated indirect talks between Syria and Israel and made "remarkable" progress, Davutoğlu told the British daily before his meeting with British Foreign Secretary David Miliband in London on Tuesday.
"If Israel wants peace, they must learn that others have rights that must be respected," he said.
Guardian also wrote that Davutoğlu spoke of three complex challenges where progress in 2010 remains problematic. The first is Cyprus, where long-running, UN-brokered talks on reunification are inching towards some sort of denouement.
"We have reached an historic moment in the negotiations. That's one reason for coming to London now," Davutoğlu said, noting Britain's role as a guarantor of any settlement.
"We know first of all the Greek Cypriots always say 'No!' Then they say 'No-o-o'. Then they say 'No-maybe' ... I am optimistic. We need an intensified international effort by the EU, by the UN, by both sides, and by Greece and Turkey and Britain as guarantors, like we had in 2004," he told The Guardian.
On Iran, Davutoğlu said that his advice to Miliband, if asked, would be to eschew more public name-calling and pursue discreet negotiations on the nuclear issue and other matters of concern. He said Turkey was at pains to maintain a friendly relationship with its Persian neighbour.
"The situation in Iran is not good, is not compatible with our vision," Davutoğlu said. "We don't want nuclear proliferation in the region, we don't want nuclear weapons in Iran or Israel or anywhere. Second, every country has the right to pursue nuclear power for peaceful purposes. Third, we also don't want more sanctions. Sanctions hurt ordinary people and neighbouring countries."
"We don't forget the very bad experience in Iraq. We would advise intensified negotiations through diplomacy. An absence of mutual trust is the problem." If asked, Turkey would be happy to facilitate a constructive dialogue with Iran, he said.
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