Olmert and Abbas to meet biweekly, Rice says
US secretary of state says 'path of cooperation' with new PA unity government exists; tells press conference in Jerusalem that Israeli, Palestinian leaders will discuss a 'political horizon,' but that two sides are 'not yet at final status negotiations'
Rice also said her envoy will try to set benchmarks for implementing a cease-fire, including the halting of rocket fire from Gaza, and for improving the flow of Palestinian travelers and goods through Israeli crossings.
She said Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas showed flexibility.
"They achieved something, which is the very regularized meetings between the two of them, in which they will not just talk about their day-to-day issues, but also about a political horizon," Rice said, speaking at a press conference in Jerusalem.
Rice said she would occasionally participate in the meetings. She said the two leaders will discuss a "political horizon," but added that the sides are "not yet at final status negotiations."
A new Palestinian government, a coalition between the Islamist Hamas group and the more moderate Fatah, was inaugurated last week. Rice said a "path to cooperation" with the new government existed, but that it must first renounce terrorism.
'Peacemaking made more complex'
Rice called on Arab states to take an active role in Mideast peacemaking, and said negotiations were made "more complex" By the presence in the government of Hamas, which has refused to meet three key international demands - to recognize Israel, renounce violence and commit to peace agreements.
The secretary of state also called for the release of kidnapped soldier Gilad Shalit. Peace efforts were "blocked" by Hamas' unwillingness to accept those international demands, Rice said.
After the press conference, Rice met with Defense Minister Amir Peretz and with the families of the kidnapped IDF soldiers and was then expected to return to Washington.
On Monday evening, Rice met with Olmert at the Prime Minister's Residence in Jerusalem for about two hours. After the meeting, their teams continued the discussion in a bid to find a formula for advancing the diplomatic process.
The Americans, who conveyed the united Arab message, were faced with the Israeli government's unequivocal demand not to concede any step of the Road Map plan.
Israel also insisted that the Palestinians meet the three demands set by the Quartet: Recognizing Israel, renouncing terror and honoring past agreements.
Prime Minister Olmert recently said that the Saudi peace plan included a number of positive elements.
"We must treat the Saudi initiative, especially its positive elements, seriously. Israel is following with great alertness developments in the Arab world and the policies of the moderate Arab states.”
However, Israel opposes negotiations based on the Arab initiative, mainly because it includes the right of return. Officials in Jerusalem said that the permanent agreement would be discussed only after the Quartet conditions were accepted and kidnapped soldier Gilad Shalit was released.
