The belief among many Israelis is that Mr Olmert's announcement was primarily aimed at diverting attention from the latest police inquiry into suspicions that he received tens of thousands of dollars from a wealthy American Jewish businessman.

"By wooing Damascus, Olmert hopes to divert attention from the criminal investigation against him and charm the pro-peace press, which, as most Israelis know, wields the real political power in this country," said Michael Oren, a senior fellow at the Shalem Center in Jerusalem.

"If this is indeed Olmert's tactic, he may have learned it from his mentor, Ariel Sharon. Right-wing opinion in this country still insists that Sharon unilaterally evacuated Gaza in 2005 in order to escape indictment on charges similar to those now facing Olmert. So, like Sharon turning over Gaza to Hamas in order to save his own political skin, Olmert is expected to yield the Golan Heights to Syria to preserve his even at the expense of Israel's security."

News of Olmert's dramatic announcement was greeted with derision by the Israeli public. According to a public opinion, 70 percent of Israelis oppose surrendering the Golan to Syria in exchange for peace. Fifty-eight percent of Israelis believe that Olmert is only conducting negotiations to divert the public's attention away from the latest corruption probe being carried out against him.

Olmert's announcement came only hours before an Israeli court lifted a ban on the publication of details about the corruption-related police probe against him.

"The fact that Olmert's announcement of his talks with Syria was synchronized with the release of new details of his alleged criminal activities made a lot of (Israeli) reporters snort," remarked Caroline Glick, a prominent commentator with The Jerusalem Post.

"It is deeply frustrating that Olmert, who led Israel to defeat in war in 2006 at the hands of Hizbullah; who has allowed southern Israel to become a free fire zone for Hamas; who is under five separate criminal investigations for financial corruption and influence peddling; and who is conducting talks with the powerless Fatah terror group toward the surrender of Judea, Samaria and Jerusalem to Hamas, now is pushing an Israeli surrender of the Golan Heights to Syria. And all the more depressing is the fact that he is getting away with it."

Olmert and his aides maintain that a peace treaty with Syria would serve Israel's national interests because it would remove Damascus from the influence of Iran and distance it from Hizbullah and Hamas.

"Any peace deal between Israel and Syria would dramatically change the face of the Middle East, in particular by isolating Iran, said Cabinet minister Binyamin Ben Eliezer.

"Peace with Syria would break up the current strategic situation because it would isolate Iran and silence Hizbullah. We are talking about a true peace, an end to hostilities, an opening of the borders, and Israel is ready to pay the price for such a peace and coexistence with Syria."

The Iranians and Hamas have reacted by expressing their discontent with the talks between Israel and Syria. Sources close to Iranian President Mahmoud Ahmadinejad said he was unable to conceal his disappointment and surprise at news of the talks.

While Hamas was careful not to openly criticize Syrian President Bashar el-Assad and his government, it too let it be known that it was "extremely disturbed" to hear news of the pending talks.

Hamas officials were quoted as saying that the movement's leaders in Damascus were even considering moving to Tehran in protest against what they believe is a change in Syria's strategy. Hamas leader Khaled Mashaal later flew to Tehran for urgent consultations on the latest developments.
In a bid to calm the Iranians, the Syrians dispatched their defence minister, Hassan Turkmani, to Tehran with a letter from Assad. The minister is reported to have assured the Iranians that Syria would not make any concessions whatsoever to Israel and would never turn its back to its friends.

And in a move that has embarrassed the Olmert government, Syria rejected Israel's demand that Damascus cut its ties with Iran and Hamas and Hizbullah as a condition for a peace agreement.

Israeli Foreign Minister Tzipi Livni had said that Syria would have to stop supporting Hamas and Hizbullah and cut ties with Iran if any agreement were to happen.

But the state-run Tishrin daily, which reflects official policy, said that Israel could not lay down conditions ahead of negotiations.

"Damascus does not want preconditions, that would put the cart before the horse ... It does not bargain over its relations with other countries and people," the paper said. "It goes without saying that impossible conditions cannot facilitate the work of negotiators."

Many Israeli and Arab analysts believe that Assad needs some change to divert attention from his own problems.

"Assad is counting on his negotiations with Israel as a personal lifeline - particularly to silence those who still denounce him for his role in the assassination of Lebanese Prime Minister Rafik Al Hariri, hosting Hamas, and funneling weapons to Hizbullah," noted Michael Oren, the Israeli analyst.
"Signing a treaty with Israel, he thinks, will effectively remove his name from America's list of terrorist sponsors. It's difficult to arraign a man or so the popular wisdom holds who is in line for a Nobel Prize."

The consensus in both Israel and the Arab world is that neither Olmert nor Assad has the to sign an historic peace agreement. Olmert is already under heavy pressure to step down because of his alleged involvement in financial corruption, while Assad is still seen as a dictator whose only goal is to remain in power.