RAMALLAH, West Bank, (AFP) - Statements by Israeli prime minister-designate Benjamin Netanyahu on peace are not encouraging as he did not mention a Palestinian state, the Palestinian Authority said on Tuesday. These statements mark a start that is not encouraging, Nabil Abu Rudeina, spokesman for Palestinian President Mahmud Abbas, told AFP. The American administration should pressure the Netanyahu government to stick to the fundamentals of the peace process, in other words land for peace. This means the restitution of all the Palestinian territories occupied in 1967, including east Jerusalem, he said. In a speech presenting his government to parliament, Netanyahu said he was ready to negotiate peace with the Palestinians . I am telling the leaders of the Palestinian Authority - if you really want peace, it is possible to reach peace, he said. The government under my direction will work towards peace on three tracks - economic, security and political. We will carry out peace negotiations with the Palestinian Authority with a view to reaching a final accord, he said. We do not want to govern another people. We do not want to exercise our power over the Palestinians . Under the final (peace) accord, the Palestinians will have all the rights to govern themselves except those that can put in danger the security and existence of the State of Israel, he said. On Iran, Netanyahu alluded to the eventual nuclear-armed Islamic Republic as the biggest threat to Israel, as he presented his government for parliamentary approval. The biggest danger to humanity and to Israel comes from the possibility of a radical regime armed with nuclear weapons, Netanyahu said, without mentioning Iran by name but making clear from his remarks whom he meant. Meanwhile, two Palestinians were killed and four others wounded on Tuesday by Israeli fire in the Hamas-run Gaza Strip, medics said. The two were killed in an air raid on the Maghazi area in the centre of the territory, a strike that also wounded two others, they said. The raid followed exchanges of fire between troops and Palestinian activists near the Kissufim border crossing east of Maghazi, in which two Palestinians were wounded. According to witnesses, the exchange of fire came after an explosion near an Israeli military jeep driving in the area. An army spokeswoman told AFP that a soldier was lightly wounded during the gunfight near Kissufim, claiming the soldiers saw Palestinian armed men and opened fire on them while they were trying to put explosives near the security barrier.