>> from our studios in new york city, this is charlie rose. >> we begin with the tragic discovery of the bodies in israel of three young teenagers. israel mourned them today. they had been kidnapped and murdered on their way home from the religious school.

they had been missing since june 12. prime minister netanyahu spoke at the funeral and lynn, send bowed to find those responsible. israeli jets and helicopters struck 34 locations in the gaza strip. the ambassador to the u.s. is here. i am pleased to have him here in this program for the first time. welcome. >> thank you for having me on the show. >> tell me what israel has discovered about the tragic death of these teenagers. >> we know for fact that this crime was perpetrated by members of hamas from the hebron area. their pictures have been presented to the israeli public and we will find them. you had three teenagers trying

to get home and they were kidnapped and essentially executed by these hamas members. israel has taken action to dismantle the structure of thomas in the west bank and we have taken action in gaza because we had rockets fired at our cities over the last couple of days, around two dozen rockets. we took anti-terror action in gaza. we have met to find out what is the right response and to bring the perpetrators to justice and dismantled the terror structure and conduct these activities against the racketeers in gaza who are firing at our cities and do what is necessary to protect israel's civilian population. >> what were the motivations for those who kidnapped the teenagers? >> what is the motivations of all these terror groups? the groups are spreading like mushrooms.

you have the shia and hezbollah is an example. you have hamas, isis, al qaeda. they are wedded to an insane idea of the world and are trying to reverse history to establish a caliphate. these terror organizations have to be opposed and they have to be confronted and that is what israel is doing in gaza and the west bank. >> if it was a political act why have they not taken credit for it? >> it might be the organization of hamas, their headquarters in gaza does not want to take credit for this act as they do not want the retribution. as for hamas, says a terror organization.

they have fired thousands of rockets at our cities. they have dispatched scores of suicide bombers. members of hamas perpetrated this crime. they are a genocidal terror organization. they are calling for the killing of jews worldwide. they not only did not condemn the kidnapping as resident of boston, they praise the kidnapping and called for more. we know what hamas is all about. it has not changed and hamas has to be confronted. >> what kinds of options does israel have it might use going forward? >> i would leave it to the decision-makers with all due respect to the ambassador. we had security cabinet meetings. israel has a serious leader and he will take the action that he

thinks are necessary to bring the perpetrators of this crime to justice and to do what is necessary to defend the israeli population. year-and-a-half ago israel had to engage in wider action in gaza. we did that because we were getting salvos of rockets, hundreds of rockets fired at our cities every couple of weeks and the prime minister had to draw line in the sand and say this is unacceptable. he took action and did not solve the problem but 2013 was one of the quietest periods. hamas believes these types of actions are excitable. the prime minister and his security cabinet are ensuring that these actions are unacceptable. the world has to send a message that terrorism is unacceptable. we appreciate that president abbas, the leader of the palestinians has condemned the

kidnappings. he is condemning the action and then joining up with terrorists the next day. it is up to president abbas to dismantle the pact he has made with the hamas organization and to turn their back on, san terror and go back to peace negotiations. >> for history's sake, what has the government said -- they have come together, they have made it clear that they found that an unacceptable organization to deal with. >> when they announced his alliance would take place the security council of israel met and made it clear that israel would not conduct political negotiations. we will not negotiate with those who are committed to art destruction. that decision was made six weeks ago. since he may join -- president

abbas joined up with hamas you have seen hamas sprout up in the west bank. that is part of the problem we have seen. in the last two and half weeks, president abbas has taken action to dismantle the terror network that has started to read. he has to take a stand against hamas. >> i realize that is one thing. did abbas condemn the killing and did he help in the search to find the teenagers? >> yes, he condemned the kidnapping at the time. and he condemned it in arabic and in saudi arabia. that is important he condemned it. palestinian security forces worked with israel and they work corporative with israel in trying to find those who are

responsible and we appreciate that as well but he is sending mixed messages. he is condemning the kidnapping one day and he is in the government with the kidnappers the next. that is the problem. we hope you will stand with israel and turn his back on hamas and terror. the palestinians built, forged this unity pact between hamas and fatah. had they recognized israel's right to exist -- >> if hamas took the steps you would be in favor of hamas and you would be in favor of one party representing the palestinians. >> we do not have any problem with palestinian unity that is for peace. we have a problem with an organization that has not changed one iota. hamas controls gaza. they are firing these rockets

and president abbas made a pact with this organization. >> will you try to assassinate the hamas leadership? >> those decisions will be made by the security cabinet in israel. i can only tell you, you know the prime minister, you have interviewed him many times. he is a very serious, very responsible leader. he will take the actions he needs to take to defend israel's population. the government has a responsibility to protect israel's civilians and protect them from rocket attacks, protect them from these heinous terrorist attacks and i have no doubt the prime minister will do what he has to to fulfill this responsibility he has. >> what can you do to change the behavior of hamas? >> if president abbas knows that it is unacceptable internationally to forge an alliance with an organization like hamas, that will be the beginning of the change. it may take some time for hamas

to change. the problem is they're getting the wrong message. they basically forged an alliance with president abbas and more or less it has been business as usual for most of the world. not during this action. everyone condemns it and we appreciate the strong statements from the president of the united states, the white house called me to express president's obama condemnation of this. everyone who is a father and a parent understands this. other world leaders have been very clear that this action is unacceptable. i think right now they should ratchet it up one notch and tell president abbas end this alliance with hamas. you have a chance to change and unite the population for peace,

not terror. >> has he heard from other leaders? >> the arabs are beginning to understand that israel is not their enemy. particularly the gulf states. we face common threats. by iran developing nuclear capability. they face radical sunni forces in the region. and you have a unique, and some ways it is a real opportunity. israel and the air of world for the first time i can remember and many people tell me for the first time in the history of the state that leading powers in the arab world and the state of israel see their interests aligned. the critical question for the israeli leadership and the people who want to contribute to peace is how do we find a way to use this opportunity to build bridges between israel and the arab world?

there is a unique opportunity here and i know my prime minister is serious about doing so. he has spoken about it up locally and it is possible because of these common enemies, because of these common dangers and threats for us to begin to build those bridges. >> you expect that the united states and iran will come to any kind of agreement by july 20 on a nuclear understanding? >> i do not know. obviously, israel is concerned iran is a country that direct the calls for israel's destruction. they are the foremost sponsor of terrorism around the world. not only nuclear weapons today but the ability and capability to produce nuclear weapons in the future. you look at an example of an agreement that was signed to remove syrian chemical weapons and chemical weapons capability. all those were removed and dismantled, at least the ones the government declared.

that is a great achievement. i applaud the president of the united states for leading that diplomatic effort. it did not solve the humanitarian problem in syria and did not prevent the fanatics that you see in isis are marching in syria and iraq. what it did change, it took the chemical weapons and took it out of potentially out of the hands of killers. the same way everything should be done to keep nuclear weapons out of the hands of this regime in tehran. not just nuclear weapons but nuclear weapons capability and we hope the model of syria will be the model that you see with iran. you are removing all of the enriched uranium and removing the capabilities that iran has to build these weapons. you're looking at radicals, and that you will see one of these

forces arm itself with nuclear weapons and if iran is left as a threshold of nuclear power other countries will rush to develop their own nuclear weapons capability and then you will create the most unstable region on the planet. you will turn it into a nuclear tinderbox and that is not only a threat to my country, it is a threat to the region and the entire world. rex israel is confident he has a strong support of the president of the united states in his search to do something with iran as well as support for israel's actions against terrorism. >> i can tell you a year-and-a-half ago i was with the prime minister in the war room in israel when we had a confrontation with hamas and they could not ask for it or support from president obama he stood by our side throughout. in what he said publicly and privately.

that strong support helped israel de-escalate the conflict area because we had that strong diplomatic backing, because hamas understood we had the strong support of the president and we had iron dome which is this antimissile defense system that we have produced together that is financed in the u.s., it is israeli technology. because of all those elements, israel was able to bring that confrontation to a cease-fire and a cease-fire which held throughout 2013 and is beginning to restore deterrence. we are great allies but israel is closer and more vulnerable to this threat in iran. our position is that iran should not the just prevented from having nuclear weapons but prevented from having a nuclear weapons capability. we do not believe the answer is to leave iran, to leave them parked at the threshold of nuclear power. they are months away from having

the fissile material necessary and to put inspectors is the only thing that will block iran from breaking out or snaking out to have nuclear weapons in the future. inspectors will not do the job. the only thing is to remove this nuclear weapons capabilities from iran. we hope that president obama and the rest of the p5 plus one leadership will make sure that they stand very strong, very firm, sanctions are hitting the iranian economy very hard. there is no need to rush into a bad deal. we hope you will stand firm and permit iran from having nuclear weapons capability. >> there is this. at the park avenue synagogue here, i was asked to come and engage in a conversation with one of the surviving early founders of israel, shimon peres who has had many jobs there. you were there sitting on the first row. you called him both a dreamer

and a doer. we will see now this conversation, a man who has served prime ministers and defense minister as well as president. where do you put him? >> he is a unique figure in our history. what i said is he is a rumor and a doer. a dreamer in the sense of imagining a different world and a doer in terms of trying to implement that vision. in public life, the people i have encountered usually fall, the great figures fall in one of those two categories. they either inspire others with their vision of the future, or they work to achieve something specific and pragmatic. rarely does a go together. you have someone who threw his lifetime of service to the state of israel has done both. the prime minister has worked very closely with him and i think he was a perfect president for israel and we wish him a long life and i am sure you will be hearing from resident peres more in the years ahead. >> thank you for joining us this

evening. >> thank you. >> when we come back, shimon peres, the president of israel for one month. ♪

>> i hope that this conversation can and i am sure it is with shimon peres match the eloquence that has introduced it. it is a deep honor for me to be here in this historic synagogue to look out and to see in the faces of people who have come here out of and appreciation of the contribution you have made to the world, to the state of israel, to humanity. there is a sense as i look at them doing this as a historic moment, an opportunity to see you as president. anyone who knows you knows that you will be back in new york and the united states because as was said earlier, the question now is where will you be and what will you be doing, with the great faith that your let's work will continue beyond the presidency?

we as members of the human community look forward to that because you have served your country and humanity for a long time. i am deeply honored to be part of this conversation. it is about history. it is about faith. it is about the state of israel. and it is about its relationship to the world. i was always fascinated by the relationship between you and david ben-gurion. you are there is his friend and the idea that he and part was responsible for your first visit to the united states. >> yes, i was a good [inaudible] i was 24 years old.

independence. and he was my mentor. [indiscernible] intellectually and otherwise. he was a totally innocent person. cynicism.ithout any what he said, he would stand by. the night,rning to he felt like a jew -- which means, in his eyes, being a jew [indiscernible] person. be a mobile

it is the highest degree of wisdom. he was not afraid to stand up and be alone. he resigned 15 times. he was lucky every time he resigned, people called him back. [laughter] they did not like to be without him. he put upnon me heavy responsibilities. within a few years he made me the director-general. discoveredhe war, i totally ignored

person. i did not know a single word of english. he called me up and says, i know what you feel. go to the united states. spent two years in new york. the most fruitful two years i'd ever had. said, you will be the head of the mission, you will study at night. i studied at the school for social research and during the day i worked. >> you said you hoped to see peace if you live to be another 10 years, you expect it to come. are you optimistic? >> 100%. it was a mistake that i was not

more optimistic. if i compare our early reality, i must say that i dreamed too small. the reality exceeded the dreams. when israel was founded, we dreamed to be a million people . time.e 650,000 at the it is better to dream great. the greater you dream, the better reality may become. [applause] >> what do you see as the biggest obstacle today?

>> skepticism of human beings. many skeptics among us. and people think that to be a little bit pessimistic is to be very much serious. i am not sure about it. i do not believe that optimists and pessimists pass away the same way but it is differently. they suggest otherwise. why leave as a pessimist? the more you trust, the more you create trust. there is a greater potential and every person can become -- as great, because he is serving. celebrate causes.

that would be the best advice i can offer any person. >> palestinians never miss an opportunity to miss an opportunity, someone said. has israel missed opportunities, too? >> i am not sure there is an extended opportunity as i am optimistic. i know there are many hurdles and problems and things don't happen overnight. walk in, shall i say, a a rose garden. >> yes. >> so you shouldn't give up because there are difficulties. i started by suggesting to king hussein -- everybody says this was the best agreement. there was a majority against it.

what should we have done afterwards? nothing? i am sorry we did not meet again but the next was arafat. arafat was a very special person. he had an excellent memory. he remembered every day. the only thing you have to remember are facts. that can wait. [laughter] without him, we could not start without him. it was better to conclude. >> yes. >> we went halfway. the whole arab -- would remain a

terroristic organization. all of them and each of them. you had these two camps. fore was abbas who was [indiscernible] about the kidnapped three boys. it will participate in finding that. he spoke for peace and spoke against terror. he did it in arabic in saudi arabia on the most sensitive issues. he was not reelected. he is not complete but we have one advantage.

they think they have an advantage of their own. a message of the future. they do not carry the future, they carry arms. they will not win. and gaza cannot support them. they already are beginning to feel a cost of it. >> do those arab nations have made peace with israel and part of the arab league, do they have influence with hamas? >> they fight hamas, some of them. >> mubarak was famous for fighting hamas, but at the same time, qatar was famous for supporting hamas. >> they were in different camps. take the president of egypt. they made it very clear that they will not allow hamas to

play a role in egypt. that is a clear position. the king of jordan the same. two countries that had many difficulties, suffering from poverty. who needs them from their standpoint? and the palestinian camp, we have two sides. sisi is against them and so is abbas for his own good reasons. it means to destroy the life of their young people and preventing them from having a future. which is reasonable. to be young today is nice, like always but it is expensive.

[laughter] young people have to compete very heavily in education and their parents cannot tell them as they did. you have to allow the young children to live in a new era. >> apart from one piece which i want to continue to talk about, israel has become this remarkable center for technology. >> yes. >> how did that happen and why did that happen? >> let me say in a light way and a serious way. that is because of the jewish dna. [laughter] [applause] the jewish dna does not permit a jew to be satisfied. and they are not satisfied. they are all the time looking to

improve things and i do not know a real jewish person who is satisfied. [laughter] >> i must be jewish. >> yes. [laughter] [applause] >> on the serious side. israel is a holy country, actually. many people complained about moses. why did you take us to israel and not saudi arabia? there are two countries in the middle east, the holy countries and [indiscernible].

-- and oily countries. we solved agriculture with technology. we were outnumbered and outmanned. we saw we could adopt that. a land rich nation that is poor needed a thriving economy. now it calls -- maybe we do not have the talent to be a simple people but we are very rich. many talented persons. maybe more than at any other place. that i think is the only compensation for the suffering of our forefathers. >> your successor as president does not have the same commitment to a two state solution that you do. >> first of all it is not personal. the president does not have his private policy and i am sure

that he will respect the policy which is basically being done by the government. many people have different ideas. there could be 1000 policies. and by the way i was very glad that the president says he wants to meet abbas. it was not his initial thought. but he felt that it was needed and i believe he will trust his own views. >> i would love for you to speak to the demographic argument as you have often pointed out. the arab population is growing much faster than economic prosperity. the idea that the two state solution has always been something you believed in. and other prime ministers, i am thinking of or rabin and sharon,

the two states to live side-by-side. if that does not happen, people worry and you have secretary of state carry getting in trouble and having to sort of pull back something he has said using the word apartheid. what are your thoughts about that? >> i think the time for a single state having two nations is over. >> it is over. >> yes. [applause] >> once they were separated they became friends. and looking at it it is not just an empty desire.

if we shall not have two states, we shall have one conflict. neither of them will ask, should condemn our children to fight all their lives. so from our standpoint we want to be a jewish and democratic state. it is inseparable being jewish and democratic. the first democrat was moses. think about it. he says all people are equal. we are all made in the image of the lord. that was the first statement in my judgment of democracy. and then nobody is superior or inferior. you have to respect everybody. and he fought for freedom. otherwise he would remain in egypt. do not think that the jewish

people are simple, disciplined people. they were in egypt and started to criticize him. why did we leave egypt? and -- he was fighting. how can you separate democracy from judaism? it is nonsense. >> you gave an interview to is really radio -- israeli radio. you said president abbas said he would support israel as a jewish state which has been an issue of contention. >> the problem of the jewish state is not a matter of

declaration. in order to be a jewish state you have to have a jewish majority. if you have a jewish majority you do not need a declaration. if you have a declaration without a jewish majority, it will just be a declaration. i think there is a formula that maybe abbas can agree to. that is my impression. the statement and the agreement would be the following. two states, one state a jewish state, israel. one state a palestinian state, palestine. so this will fit both the realities and the declaration. >> it seems on the issue of war and peace that everybody knows what the settlement has to be. it has not really changed since

the 1967 war. >> it did change for a much. the two state solution was not accepted either the two major parties of israel, the right and the left. there was a time that the right great, and now the much --d very [indiscernible] time. take it is a process. so now from our standpoint, there is a clear majority and official policy of israel. support a two state solution. they wanted to conquer

everything. in fact, at least in principle, there is an agreement that a two state solution is the best. people say it will be difficult and complicated. difficult. and what is the alternative? you have to think in terms of alternatives. >> of all the prime ministers, who have you been doses two, was it that sucker been -- itzak rabin? >> we are products of two streams of the labor party.

we followed our streams and it was not. and finally we worked together very closely. the last day of itzhak, was the saddest day for me and i never saw him more happy. this day came and we embraced each other. after what happened at the hospital. i saw his face.

i shall never forget it. it was the happiest face i ever saw in him. it is so contradictory. now we lived together, we had differences, too. it is nature but we are able to overcome it. i do not have the slightest doubt about it. we argued it was for the sake of the country. so i think we're very close. the issue is not how do you feel but what do you do? >> on the major issues, have you felt confident that every american resident supported

israel? >> by and large, yes. i met 10 presidents. it is very hard to be elected to be a president and the united states. it is not a simple proposition. once you are elected it is hard to be a president. it is not easy. you need a lot of willpower, a lot of talent. they were republicans and there were democrats. all of them without exception as far as i am concerned are exceedingly friendly. the first i met was kennedy. i was then a low ranking person, i was deputy minister of defense. we went through the rear entry.

and i spoke with him, he looked different than in pictures. in the pictures he has blonde hair but when you meet him he had a great deal of white hair because he was suffering. and ben-gurion saw him the first. he was elected november. for the first month he spent [inaudible] by the end of january. they had a talk. after the talk kennedy and

ben-gurion went to the elevator. we had a chance to talk then. kennedy says, mr. prime minister, i know that you and your people supported me very much and it helped me to be elected. what can i do in return? ben-gurion looked at him and says, you can do one thing. be a great president of the united states of america. that is the best we can have. because the united states really changed the world. about the united states the world with be a mistake. because america being a superpower never tried to be an empire.

because america became great by giving, not by taking. by helping others, not by using others. and israel is a very special case. it grows in the bones of the united states. ben-gurion was really very friendly with presidents. i can witness. it is in the american tradition and because we were small in size but great in freedom, and because we weren't the only democracy in the middle east, we were threatened and also because we are jewish. with values and traditions. america stood on our side more

than any other country because we were the most endangered country. so people -- they think it is too good to be true. i am telling you. it is too true to be good. [laughter] [applause] >> if you could write the first paragraph of your obituary, what would you write? [laughter] >> i never thought about it. [laughter] no. i don't know. [applause] >> what has been the proudest moment for you?

>> the one tonight and tomorrow. i am not going to change the past. i am not interested in it. i think every person -- >> you can change the future. >> you can and you have to. you can. in my whole interest is about tomorrow and tomorrow is in god's hand. it does not permit us to change the past. if you want to do that or, tomorrow. i have to say things are not plain and simple. we are facing the danger of iran. which is not a simple proposition again. i do not know what the hell they want from us. we are not their enemies.

nobody is threatening iran. nobody. and gave priority to america. but why do they became the center of supporting every terroristic organization? by the way -- the young people, they do not agree with the present policy but right now we have to stand and prevent iran from becoming nuclear not because they are inferior people but because they are the only country that threatens another state, to destroy it. i was glad the meeting with the

president, he spoke very clearly about the subject. that he will not permit iran to become a nuclear country or -- that has nuclear bombs. >> you feel confident that israel should not have to take it into its hands to prevent iran from doing that because the united states will? >> i think iran is a danger to the whole world. it is not a simple question, you know? nobody wants another hiroshima. nobody. we are not out of it.

but we know the leading force in this camp is the united states of america. it is not that we do not want another one. we know the dangers. some people are sympathetic to iran. iran has their own problems, too. and syria and iraq. even if you have a nuclear device it does not mean that the whole world is going to kneel and submit to your ambitions. they will discover, too. >> does it matter that you are the most popular that you have ever been? >> it is confusing, you know? [laughter] why am i popular? >> you are leaving office and you are the most popular you have ever been.

>> polls are like perfume. nice to smell, dangerous to drink. [laughter] i believe nowadays to be a leader is to be a natural. can you bring an end to terror? i am not sure. can you bring an end to the social cap? i am not sure. what makes you think you're such a powerful man? today to be a public servant you have to sell the people, not to roll them. popularity -- my people believe i am a servant. i am not running out of personal ambition.

>> i can never express to you the full appreciation of the people in this room for your service and we thank you for that. [applause] ♪

>> live from pier 3 in san francisco, welcome to "bloomberg west." i'm emily chang. ahead this hour, a federal privacy panel calls the nsa's prison program legal and constitutional. in the report says that foreign intel internet surveillance has helped protect the nation's security. the panel wants to make sure the nsa is not spying on american citizens and is recommending some changes. massive sales numbers, the four-year-old chinesmp