US seeks outline of Palestinian state within 90 days

"The New York Times": Israel will keep large settlement blocks, and Israel will exchange a commensurate amount of land.

Obama administration officials believe that, after a second 90-day settlement construction freeze, assuming that the Israeli government approves it, the settlements issue will lose its sting, provided that Israel and the Palestinians make enough progress on the contours of a Palestinian state. A person close to the negotiations told "The New York Times" that, under the most likely outcome, the two sides would agree that several large West Bank settlement blocks would be kept in Israeli territory, and Israel would exchange a commensurate amount of land to compensate the Palestinians for that territory.

The person added that drawing the exact border lines could be left for later in the negotiations, but a general agreement on the shape of a state would make the settlements recede in importance. The two sides would not have to settle delicate issues like the status of Jerusalem in the first 90 days. The point of the extension, the official said, is to allow the negotiations to gain enough traction to continue without further disruption.

Prime Minister Benjamin Netanyahu will simultaneously negotiate with the Obama administration on the details in the US incentives package.

President Obama, returning from his Asia trip, praised the tentative deal worked out by Secretary of State Hillary Clinton and Netanyahu. “I think it is promising,” Obama told reporters aboard Air Force One.

Obama said, “I commend Prime Minister Netanyahu for taking, I think, a very constructive step. It’s not easy for him to do, but I think it’s a signal that he is serious."

Published by Globes [online], Israel business news - www.globes-online.com - on November 15, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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