Israel: Netanyahu Manoeuvring for Peace Talks with Palestine?

Eleven days ago, former Justice Minister Yossi Beilin told the Meretz Party leadership that Israeli Prime Minister Netanyahu was close to finalizing an agreement with the Obama administration for peace talks between Israel and the Palestinian Authority, envisaging a two-state solution based on 1967 borders:

* Timetable: Netanyahu is willing to accept the U.S. proposal to allot 24 months to talks, but does not want to announce that the goal is to reach a deal by the end of that period.

* Borders: Netanyahu has agreed that the goal of the talks is to end the conflict on the basis of an independent Palestinian state on the basis of the 1967 borders, the exchange of agreed-upon territory, and a Jewish state with recognized and secure borders that will meet Israel's security needs.

* Jerusalem: Netanyahu has agreed that the status of Jerusalem will be discussed in the negotiations, but has not agreed to any preconditions on the issue.

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* Refugees: Netanyahu said he was willing to discuss the refugee issue only in a multilateral framework.

* Previous agreements: Netanyahu is willing to commit to all previously-signed agreements.

* Arab Peace Initiative: Netanyahu is not willing to support the plan, but is willing to say both sides are taking into consideration international initiatives, including this one, that contribute to the advancement of the peace process.

Although the government called Beilin's words "unfounded", Egyptian Foreign Minister Ahmed Aboul Gheit's "good news" following the meeting with Netanyahu, Palestinian Authority leader Mahmoud Abbas's scheduled visit to Cairo on Wednesday, and U.S. Mideast special envoy George Mitchell's expected visit in the second week of January lend weight to Beilin's scenario.

Some observers have linked these development to Netanyahu's reshaping of his Government. Haaretz's Akiva Eldar argued that "Netanyahu needs Kadima to fill the ranks that will empty in the wake of the departure of his partners from Yisrael Beiteinu and the National Union, and perhaps also some members of [Netanyahu's] Likud". Israel Harel from Haaretz added, "Netanyahu does need Kadima: to serve as a political counterweight to the ultra-Orthodox, in order to transform them from a growing burden to productive partners in building the Israeli state and Israeli society." Harel warned,however, that Likud might be divided again if Netanyahu cannot move further due to the Right's firm opposition.