1ST LEAD Obama, Netanyahu laud cooperation after agreement on military aid By Anne K Walters, dpa

New York (dpa) - US President Barack Obama and Israeli Prime Minister Benjamin Netanyahu praised security cooperation between the two allies on Wednesday after the nations last week agreed on a 38-billion-dollar US military aid package."I want to thank you for the extensive security and intelligence cooperation between our two countries. I don‘t think people at large understand the breadth and depth of the cooperation, but I know it and I want to thank you on behalf of all of the people of Israel," Netanyahu said ahead of a meeting on the sidelines of the UN General Assembly in New York.Obama praised the new package, under which Israel will receive 3.8 billion dollars annually starting in 2019, because "it allows the Israelis to have some kind of certainty in a moment when there‘s enormous uncertainty in the region. It‘s a very difficult and dangerous time in the Middle East."The meeting was likely the last between the leaders before Obama leaves office in January.Despite an often rocky relationship between the men that flared over the Iran nuclear deal last year, both leaders underscored the importance of the US-Israel alliance.Netanyahu also extended a hand to Obama over his favourite hobby - golf."I want you to know, Barack, that you‘ll always be a welcome guest in Israel," Netanyahu said. "And, by the way, I don‘t play golf, but right next to my home in Caesarea, in Israel, is a terrific golf course."The leaders discussed the recent spike in violence between Israelis and Palestinians and concerns over Israeli settlement activity, a US official said after the meeting.Obama said the Israeli settlements in the West Bank were having a "corrosive effect" on the prospect of a two-state solution, and Netanyahu disagreed, the official said."They‘ve never papered over their differences," another senior administration official said.Netanyahu is scheduled to give a speech to the UN General Assembly on Thursday.Obama had briefly addressed the two-state solution between Israel and the Palestinian Territories in a speech to the assembly on Tuesday that encouraged tolerance and denounced isolationist tendencies."Israelis and Palestinians will be better off if Palestinians reject incitement and recognize the legitimacy of Israel, but Israel recognizes that it cannot permanently occupy and settle Palestinian land," he said.Amid speculation that Obama may try to revive peace talks before he leaves office, nearly 90 senators had sent him a letter ahead of the general assembly that called for him to veto any "one-sided" UN Security Council resolutions on peace talks.