PM confirms intention to negotiate with Abbas on formation of Palestinian
state
By Aluf Benn and Barak Ravid, Haaretz Correspondents Last update - 21:26
25/07/2007
www.haaretz.com/hasen/spages/886022.html

Prime Minister Ehud Olmert confirmed Wednesday that he intends to engage in
negotiations with Palestinian Authority Chairman Mahmoud Abbas on the
formation of a Palestinian state.

Olmert was responding to a Haaretz report, according to which he offered to
hold negotiations toward an "Agreement of Principles" for the establishment
of a Palestinian state comprised of the Gaza Strip and most of the West
Bank.

In a press conference with President Shimon Peres, Olmert stressed that no
timetable has been set for the negotiations.

The prime minister added that there are "other quiet understandings" with
the PA, in addition to the confidence-building measures Israel has taken.
These include the release of prisoners affiliated with Abbas' Fatah
movement, amnesty for wanted Fatah men and the transfer of withheld tax
funds.

Olmert's proposal to Abbas is based on his view that it is important to
first discuss issues that are relatively easy for the two sides to agree
upon. The prime minister also believes that such an accord will enjoy the
overwhelming support of the Israeli public and the Knesset.

"I resolve to create a track that will allow me to hold serious discussions
with Abu Mazen," Olmert said in the press conference, referring to Abbas.

"Just so it's clear, [Abbas] carries full responsibility and he is ready to
take a risk. There are risks for Israel as well, but we are strong enough to
take that risk," he continued.

Referring to visits by the Egyptian and Jordanian foreign ministers, who are
in Israel to promote the Arab League peace initiative, Olmert said he would
not wait for them in order to pursue peace with the Palestinians.

"I want to start a political process with all my might, and to let things
move forward. If it is appropriate for other states to help, like Saudi
Arabia or the United Arab Emirates, we will welcome it, but we won't wait
for them and sit inactively in order to start the process. We are the ones
to lead and the ones to initiate, because we believe that progress on the
peace process serves the interests of Israel."

If Olmert's proposal is accepted by the Palestinians, the two sides will
begin negotiations on the characteristics of the Palestinian state, its
official institutions, its economy, and the customs arrangement it will have
with Israel.

After an "Agreement of Principles," the two sides will tackle the more
sensitive diplomatic issues, like final borders and the transit
arrangements.

Such agreement is believed to offer both Abbas and Olmert domestic political
gains, and the Palestinian leader will be able to use it as part of his
reelection campaign.

According to surveys, Olmert knows that the Israeli public is overwhelmingly
supportive of a two-state solution, and that the current balance of power in
the Knesset will allow him to rally a firm majority of 82 MKs behind such an
agreement.

In the prime minister's view, this is not the time to deal with the minute
details of the agreement, because it will be very difficult to reach
agreement on final status issues, such as borders, Jerusalem and the
refugees.

These, Olmert proposes, should be left to the end of the negotiations.
Olmert would like to reach an agreement on principles, and then proceed to
more difficult issues. This way, the prime minister claims, it will be
possible to restart the peace process, despite the weakness of the
Palestinian Authority, and the skepticism regarding its ability to keep its
part of the agreement and guarantee security.

The likely principles that Olmert will offer as part of the the agreement
will be the establishment of a Palestinian state comprising about 90 percent
of the territory of the West Bank and in the Gaza Strip.

Even prior to the 2006 elections, Olmert suggested that Israel unilaterally
evacuate from such territory in the West Bank, and withdraw to the
separation fence, for the primary purpose of retaining a Jewish majority in
its territory, behind a defensible border.

Palestinian support for such agreement will contribute to Israeli public and
political support for the deal.

*Exchange of territory to compensate for the large settlement blocs that
will remain under Israeli control in the West Bank.

*Connecting the West Bank and the Gaza Strip through a tunnel in order to
offer the Palestinians territorial contiguity, prevent friction between
Israelis and Palestinians, and preserve security.

Israel will request territorial compensation for the digging of a tunnel in
its sovereign territory. From Israel's point of view, a tunnel connecting
the West Bank and the Strip is the best option to link the two, and is
better than the elevated or sunken highway proposals.

*The Palestinians will be able to declare Jerusalem their capital. In the
past Olmert has hinted that he would be willing to withdraw from the Arab
neighborhoods of East Jerusalem "on the edge," which have never been
considered part of the historical city.

The Old City, its environs and the Mount of Olives would remain in Israel's
control.

The prime minister initiated discussions on the political vision during his
recent meetings with Abbas. The goals and the framework of the negotiations
was also discussed during the routine meetings between Olmert's senior
aides, Yoram Turbowicz and Shalom Turjeman and their Palestinian
counterparts, Rafik Huseini and Saeb Erekat.

Olmert turned down the proposal of Secretary of State Condoleezza Rice for a
"shelf agreement," which would be a complete final status agreement,
negotiated by the U.S., whose implementation would be postponed.

The prime minister explained that he is concerned that the PA will be unable
to implement the agreement.

Olmert is also worried that such a plan would be used as the starting points
for further negotiations, as happened to the proposals of Prime Minister
Ehud Barak at Camp David in 2000, and the Clinton Plan, that are now seen by
the international community as the basis to any future agreement.