Prime Minister Yitzhak Shamir expressed confidence Friday that efforts to bring Israel and its Arab neigbors together for direct talks would soon succeed and lead "step by step - no matter how long it takes - " to peace.

"On reflection, the prospects have never been better," he said.The prime minister, addressing the nation in a statement to mark the celebration of the Jewish New Year, which begins Sunday night, said he was hopeful the tortuous Middle East peace process would soon bear fruit.

"In the first weeks of the new year, we may be taking the first steps along the difficult road towards peace between us and our neighbors and coexistence with the Palestinian Arab population," Sha-mir said.

"I am optimistic that with patience, perseverance and good will, we shall advance, step by step - no matter how long it takes - until we attain peace.

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"It will not be easy. We are trying to resolve a 100-year-old complex problem and there are no quick or simple solutions," he said.

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