Israeli President Shimon Peres said on Tuesday in a speech to the Brazilian Congress that his country is willing to make "difficult and painful" concessions to the Palestinians to establish peace in the Gaza Strip.

Peres, who began a six-day official visit to the South American country, also urged the Palestinian Authority president, Mahmoud Abbas, to keep on discussing an agreement between Palestinians and Israelis.

"Israel recognizes the Palestinian right to statehood. Israel is ready to make concessions so that we have the State of Israel and Palestine side by side. Let's be neighbors," he said.

Mahmoud Abbas, on his turn, will be visiting Brazil in the second half of this month and the Iranian President Mahmoud Ahmadinejad will come late November.

Peres highlighted that Brazil, which has proposed to be a mediator in peace negotiations, has an important role in the fight to end the conflict in the Middle East.

"I know that Brazil denies threats, destruction, denies terror. The clear voice of Brazil has a very strong echo throughout the world," he said.

The Israeli leader praised the Brazilian president and said he came to Brazil to learn how to reduce poverty by 40 percent and how to live with cultural and religious differences.

"I came to learn from a country like Brazil that rises to the heights. I came to see how they fight against poverty, intolerance and narrow vision," he said.

In his speech, Peres mentioned his concern with the Iranian president's threats, the hatred against Israel and their building nuclear weapons.

"Historically the Iranian people are not our enemy, but I cannot ignore this government that is making nuclear weapons and wants to destroy Israel. The Iranian government is against the UN treaty, is against the right to live. Troops are being trained with the support of Hamas," he said.

Peres will meet Brazilian President Lula da Silva Wednesday. According to official sources, Iran's growing presence in South America is one of the topics to be discussed in this meeting.

Peres' arrival to Brazil represents the first visit by an Israeli president to the South American in 40 years.