Israel-Palestine: Is There Hope in West Jerusalem's "Interim Solution"?

To save the direct Israel-Palestine talks, or possibly just to save face, secret negotiations are reportedly going on between Washington and West Jerusalem. One proposal involves  "leasing lands in East Jerusalem from future Palestinian state for 40-99 years", according to the London-based Arabic language daily Asharq al-Awsat. 

Is there more? On Saturday, the London-based Al-Hayat newspaper reported that Israel Prime Minister Benjamin Netanyahu is trying to convince the US administration to accept a plan for an "interim solution" based on a 10-year transition which the Palestinian state will be established on temporary borders. According to this plan, the Jerusalem and the right of return issues will be bypassed and the temporary borders will be the current Israeli security fence/Separation Wall. Israel will lease the Jordan Valley for 40 years and Israel Defense Forces bases will remain at entrances to West Bank cities. 

The bottom line is that Israel would remain control over 40 percent of the West Bank during the planned interim period. 

If the rumours are true, high-level talks could take place when PM Benjamin Netanyahu flies to New Orleans  for the North American Jewish Conference on 7 November, where he will meet US Vice President Joe Biden. 

Would the proposed interim solution build up mutual trust between two communities, leading to the final agreement for legitimacy of the Palestinian state? Or would it contribute to the institutionalisation of Israel's colonisation over Palestinian lands, resources, and labour, with far greater effects than developments after the 1993 Oslo Agreement, widening the gap between Palestinian factions and setting aside a Palestinian identity?