Westerwelle, on a two-day visit to Israel and the Palestinian Authority, stated "Germany could help create an atmosphere of confidence," which he said was necessary to overcome the stalemate in the negotiations.
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Westerwelle paid a private visit to the outgoing Prime Minister Salam Fayyad on Saturday afternoon and told him that "the most important thing is that direct talks between Israel and the Palestinians are made possible once more."
He stressed the importance of economic growth in the Palestinian territories, saying it was "a basis for peaceful developments."
Economic development of the Palestinian Authority is a constant concern of the American Secretary of State John Kerry, due in the region on May 23. He is expected to visit both Israel and the West Bank.
During his tour of Ramallah, Westerwelle also urged to hold an international summit on Syria, thereby reflecting the expressed wish of US and Russia. Such a meeting, he said, "would be important."
He stressed that a "political solution" to the conflict was "the only factor in the current state of things that could bring stability and peace and democratic change to Syria."
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