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Posted AT 8:04 PM EDT on 08/05/08

Israeli PM denies taking illicit donations

Associated Press

JERUSALEM — Israeli Prime Minister Ehud Mr. Olmert denied fresh accusations that he illegally accepted hundreds of thousands of dollars from a U.S. citizen, but said Thursday night that he will step down if he is indicted. The latest investigation into corruption allegations involving Mr. Olmert has distracted Israel for nearly a week and has the potential to derail delicate peace talks with the Palestinians.

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