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| US envoy to hold talks with Abbas | US envoy to hold talks with Abbas |
| (20 minutes later) | |
| US Middle East envoy George Mitchell is to meet Palestinian Authority President Mahmoud Abbas, a day after his first meetings with Israel's new government. | US Middle East envoy George Mitchell is to meet Palestinian Authority President Mahmoud Abbas, a day after his first meetings with Israel's new government. |
| On Thursday, Israeli PM Benjamin Netanyahu said he would only discuss a Palestinian state if Palestinians recognised Israel as a Jewish state. | On Thursday, Israeli PM Benjamin Netanyahu said he would only discuss a Palestinian state if Palestinians recognised Israel as a Jewish state. |
| A spokesman for Mr Abbas told AFP the demand was an "obstacle" to peace. | A spokesman for Mr Abbas told AFP the demand was an "obstacle" to peace. |
| Mr Netanyahu, of the right-wing Likud party, has not previously endorsed the creation of a Palestinian state. | Mr Netanyahu, of the right-wing Likud party, has not previously endorsed the creation of a Palestinian state. |
| Mr Mitchell is also expected to meet Palestinian Authority Prime Minister Salam Fayyad during his visit to the West Bank town of Ramallah on Friday. | Mr Mitchell is also expected to meet Palestinian Authority Prime Minister Salam Fayyad during his visit to the West Bank town of Ramallah on Friday. |
| Chief Palestinian negotiator Saeb Erekat has said that for peace talks to resume, Israel must declare its support for a two-state solution. | Chief Palestinian negotiator Saeb Erekat has said that for peace talks to resume, Israel must declare its support for a two-state solution. |
| Mr Netanyahu has offered "economic peace", not statehood, to Palestinians | Mr Netanyahu has offered "economic peace", not statehood, to Palestinians |
| The Palestinian Authority has also called repeatedly for international pressure on Israel to keep its commitment to freezing building in settlements in the West Bank. | The Palestinian Authority has also called repeatedly for international pressure on Israel to keep its commitment to freezing building in settlements in the West Bank. |
| The settlements are considered illegal under international law, although Israel disputes this. | The settlements are considered illegal under international law, although Israel disputes this. |
| In his talks with the Israeli president and foreign minister, Mr Mitchell, reiterated US support for a Palestinian state alongside Israel | In his talks with the Israeli president and foreign minister, Mr Mitchell, reiterated US support for a Palestinian state alongside Israel |
| But Foreign Minister Avigdor Lieberman said the diplomatic process was at a "dead end" and a new approach was needed. | But Foreign Minister Avigdor Lieberman said the diplomatic process was at a "dead end" and a new approach was needed. |
| A senior official in Mr Netanyahu's office quoted the new prime minister as telling Mr Mitchell: "Israel expects the Palestinians to first recognise Israel as a Jewish state before talking about two states for two peoples." | A senior official in Mr Netanyahu's office quoted the new prime minister as telling Mr Mitchell: "Israel expects the Palestinians to first recognise Israel as a Jewish state before talking about two states for two peoples." |
| Correspondents say this would be tantamount to the Palestinians abandoning the "right to return" of Palestinian refugees, and would be a very difficult demand for them to accept ahead of final-status talks. | Correspondents say this would be tantamount to the Palestinians abandoning the "right to return" of Palestinian refugees, and would be a very difficult demand for them to accept ahead of final-status talks. |
| Mr Mitchell's first meeting on Thursday was with President Shimon Peres. | Mr Mitchell's first meeting on Thursday was with President Shimon Peres. |
| He assured the president of Washington's "absolute and strong commitment" to Israel's security. | He assured the president of Washington's "absolute and strong commitment" to Israel's security. |
| Israeli FM Avigdor Lieberman (left) said a new approach to peace is needed | |
| Mr Peres told him that "no door to peace" had been closed and called 2009 a "decisive year in the Middle East". | Mr Peres told him that "no door to peace" had been closed and called 2009 a "decisive year in the Middle East". |
| However his upbeat tone appeared to contrast with the message from Foreign Minister Lieberman, who has rejected the previous Israeli government's pledge in 2007 to work towards a Palestinian state under then-US President George W Bush. | However his upbeat tone appeared to contrast with the message from Foreign Minister Lieberman, who has rejected the previous Israeli government's pledge in 2007 to work towards a Palestinian state under then-US President George W Bush. |
| Mr Lieberman told Mr Mitchell that "the traditional approach has so far brought neither results nor solutions," the ministry said in a statement. | Mr Lieberman told Mr Mitchell that "the traditional approach has so far brought neither results nor solutions," the ministry said in a statement. |
| "The Israeli government will have to formulate new ideas and a new approach," Mr Lieberman added. | "The Israeli government will have to formulate new ideas and a new approach," Mr Lieberman added. |
| The visit is Mr Mitchell's first since Mr Netanyahu formed his right-leaning coalition, which brings together centre-right, centre-left and far-right parties. | The visit is Mr Mitchell's first since Mr Netanyahu formed his right-leaning coalition, which brings together centre-right, centre-left and far-right parties. |
| Mr Netanyahu has said the economy in the Israeli-occupied West Bank should be improved before progress on creating a Palestinian state is attempted. | Mr Netanyahu has said the economy in the Israeli-occupied West Bank should be improved before progress on creating a Palestinian state is attempted. |
| He has said he intends to resume talks and co-operation to promote "economic peace". | He has said he intends to resume talks and co-operation to promote "economic peace". |
| Mr Lieberman has said his government remains committed to the 2003 "road map" peace plan, which aims to create a Palestinian state through a phased process. | Mr Lieberman has said his government remains committed to the 2003 "road map" peace plan, which aims to create a Palestinian state through a phased process. |
| But he has also rejected the previous Israeli government's pledge to work towards Palestinian statehood a the 2007 peace conference at Annapolis in the US. | But he has also rejected the previous Israeli government's pledge to work towards Palestinian statehood a the 2007 peace conference at Annapolis in the US. |