WASHINGTON (AFP) - Saudi Arabia on Friday accused Israel of trying to distract attention from the core issue of establishing a Palestinian state by turning to side issues like academic conferences and civil aviation matters. The kingdom also rebuffed Obama Administration appeals for immediate Arab gestures towards normalising ties with Israel and urged the Jewish state to show it was serious about peace. Seated next to US Secretary of State Hillary Clinton, Saudi Foreign Minister Saud al-Faisal rejected a step-by-step diplomatic approach and called for tackling core issues like Palestinian statehood and refugees. The question is not what the Arab world will offer, Prince Saud said at a joint Press conference with Hillary after talks in Washington. The question really is: what will Israel give in exchange for this comprehensive offer. He was referring to a Saudi-sponsored initiative endorsed by the 22-nation Arab League. Saud, reading slowly and deliberately from a statement, said: Israel has not even responded to an American request to halt settlements which President (Barack) Obama described as illegitimate. He balked at a question from a journalist who asked what Saudi Arabia would do in return if the right-leaning Israeli government of Benjamin Netanyahu changed course and froze all settlement activity. He said it was not by making gestures, it is by delving into the real issues that will lead the way to peace in the Middle East. He also accused Israel of trying to distract attention from the core issue of establishing a Palestinian state by turning to side issues like academic conferences and civil aviation matters. This is not the way to peace, he said, warning it will only lead the region into a maelstrom of instability and violence. In a sign of differences, Saud described his talks with Hillary as frank, honest and open between longstanding allies, but he also praised the Obama Administration for tackling the Arab-Israeli conflict so quickly. The chief US diplomat reiterated calls she had made last month in a keynote foreign policy speech where she urged Arab states to take steps towards normalizing ties with Israel. Weve also asked the Arab states, including our friends in Saudi Arabia, to work with us to take steps to improve relations with Israel, to support the Palestinian Authority and to prepare their people to embrace the eventual peace between the Palestinians and the Israelis, she told the Press conference. Her remarks were buttressed by more than 200 US lawmakers who urged Saudi King Abdullah on Friday to push Middle East peace efforts forward with a dramatic gesture towards recognizing Israels legitimacy. The US representatives cited Egyptian president Anwar Sadats historic 1977 visit to Jerusalem and the opening of direct Jordan-Israel ties by the late King Hussein as Arab-world actions that aided the cause of peace. Hillary also said the United States and Saudi Arabia shared concerns about the destabilising role that Iran has played throughout the region and the continued expansion of its nuclear programme and its support for terrorism. She added that Washington had an unwavering commitment towards Saudi Arabias security.