By Avida Landau JERUSALEM, March 25 (Reuters) - Israeli Prime Minister Ehud Olmert on Sunday endorsed elder statesman and Nobel peace laureate Shimon Peres as his candidate for the country's next president, a political source said. Olmert's remarks to ministers of his Kadima party dismissed any notion the two had had a falling out over Peres's testimony to a Lebanon war inquiry panel, that he would not have entered the war in July had a decision rested with him. The expected release in the coming weeks of the commission's interim findings could determine Olmert's political future. Many in the Israeli public regard the war as having been a failure. The souce told Reuters Olmert said: "I have no other candidate than Shimon Peres." Peres serves as Olmert's deputy in the centrist party. "We will continue to strive for Peres" to win the election due to be held in parliament this summer, Olmert added. Peres, 83, is well known abroad for his role in achieving a 1993 peace accord with Palestinians, a deal for which he shared a Nobel prize. Peres now wants to succeed Israeli President Moshe Katsav for the mainly ceremonial post selected by parliament. Olmert's backing improves Peres' chances, though they remain uncertain as he faces at least two other challengers. Katsav was forced to take a leave of absence in January after being accused of raping and sexually molesting several female employees. He has denied any wrongdoing and cannot be charged before his term ends in July. The Kadima party had expressed support for Peres some weeks ago for presidency, but Israeli media said some party officials had a change of heart after Peres' Lebanon war panel testimony. Peres, a former prime minister and defence minister said not only that he wouldn't have entered the war but also that he thought the Israeli army had not been prepared to fight the 34-day conflict with Hezbollah guerillas that ended in August, in which 1,200 Lebanese and 157 Israelis were killed.
