Palestine & Israel: The Situation on the Eve of Obama-Netanyahu Talks

On the eve of Israeli Prime Minister Benjamin Netanyahu's visit to Washington, Palestinian Authority President Mahmoud Abbas has reportedly proposed the creation of a Palestinian state within the 1967 borders, with a possible land swap of 2.3 percent of the West Bank.

The PA would receive land of comparable size and quality in the southern West Bank as well as a corridor between the West Bank and the Gaza Strip. Abbas also reportedly proposed the easing of Palestinian demands over East Jerusalem to permit the Jewish Quarter of the Old City as well as the Western Wall to remain under Israeli sovereignty. The remainder of the Old City would become the capital of a Palestinian state but would be open to the adherents of all faiths.

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However, on Saturday, chief Palestinian negotiator Saeb Erekat denied that Abbas had condoned these proposals. Dismissing reports of progress between the Palestinians and the Israelis, Erekat said that the American intention to upgrade current peace discussions to direct talks has been failing due to Israel's actions. He continued:

Israel refuses to give up the building in the settlements and to agree to renew the negotiations that were impeded by this stumbling block and, therefore, has failed in the intention to transform the proximity talks into direct contacts.

If Abbas was supporiting the reported offer, similar to the Camp David proposal of the Palestinian side in 2000, it matches Israeli Prime Minister Netanyahu's alleged suggestion to Obama, asking for the approval of the Israeli rule and the continuation of but limitation of construction in large settlements in the West Bank.

The Palestinian side and the Americans may realise that the current pressure on Israel to continue the freeze onn construction in the West Bank settlements is not sustainable as settlers' friction with Palestinians are increasing. Palestinians might be preparing for a soft turn if Washington approves.

However, the core issues are going to be the refugee problem and, especially, the status of Jerusalem. Palestinians are insistent on East Jerusalem as the capital of a Palestinian state and on rule over the Temple Mount while giving the authority of the Jewish Quarter and the Western Wall to the Israeli government. This is likely to be the key to a move to direct talks.

And Hamas? Well, the flotilla crisis is on hold now, since the international community gave consent to Israel's internal probe and West Jerusalem's officials are to announce the new and relatively limited blacklist of goods prohibited entry into Gaza. The Israeli government has successfully reduced the "problem" with Hamas to the status of captured Israeli soldier Gilad Shalit. If Washington steps back and the Palestinians pursue a practical solution, the process will continue without Hamas as long as it does not change its strategy.