"We have concluded with the Minister [Livni] that even in a case of a painful Kosovo decision, we can in one diplomatic offensive achieve much so that such decision could be reversed," said Serbian Foreign Minister Vuk Draskovic.

Livni has confirmed to Serbian reporters that "Israel supports a compromise agreement" on Kosovo status and that she was very interested in hearing all ideas that the Serbian side was willing to accept as an outcome in the talks.

Livni was grateful to Serbia for its offer to use its influence in the Islamic world to help bring about official recognition of the state of Israel as well as Serbia's "clear condemnation of Iranian president's comments on Israel."

"Everyone, and Albanians should respect the UN principle of territorial integrity," said Draskovic. "I am asking Israeli support of Serbia on this issue."

After a meeting with Draskovic, Israeli Prime Minister Ehud Olmert said that Israel is ready for an economic offensive into Serbia that could bring in about $4 billion in investments. Draskovic confirmed that Israeli investment opportunities in Serbia are "practically limitless."

At the Yad Vashem Holocaust Memorial, Draskovic was moved by the memory of Jasenovac, a Nazi era Croatian concentration camp where over 1 million Serbs and Jews were murdered.

"It is our responsibility to remember as long we are alive. To forgive? We do not have the right to forgive for those that are dead and murdered," wrote Draskovic in the Memorial's book of memories.