US sees progress in Mideast peace talks

US sees progress in Mideast peace talks




The United States said on Wednesday it believed Israel and the Palestinians were making progress on resolving a dispute over settlement building that is threatening to sink newly-launched peace talks.

Israeli Prime Minister Benjamin Netanyahu welcomed Palestinian President Mahmoud Abbas to his official residence, shaking his hand as U.S. Secretary of State Hillary Clinton looked on approvingly, a day after they met in Egypt.

After the two-hour session, U.S. envoy George Mitchell sounded an upbeat note the negotiations would continue despite the pending expiry of Israel's partial moratorium on construction in settlements in the occupied West Bank.

That subject was discussed this evening, we continue in our efforts to make progress in that regard and believe that we are doing so," Mitchell said.

Palestinians say they will quit the negotiations if building resumes in the settlements, built on land they want for a state and which they fear would deny them a viable and contiguous country. The limited freeze is due to end on Sept. 30.

They are tackling up front ... the issues that are at the centre of the Israeli-Palestinian conflict," Mitchell told.

"I will say that the two leaders are not leaving the tough issues to the end of their discussions ... We take this as a strong indicator of their belief that peace is possible," he added.