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"There is still time for them to, in accordance with Annapolis, reach agreement by the end of the year," Rice said, referring to the city in Maryland where the initial peace accord was reached. "We will keep working toward that goal." Talks between the two sides resumed last year after a seven-year breakdown. Among the thorny issues being discussed is the formation of a Palestinian state. Palestinians want the final deal to outline a Palestinian state that includes most of the West Bank, the Gaza Strip and east Jerusalem, territories Israel captured in the 1967 Mideast war. A new hurdle to the talks arose Thursday when a key planning committee approved construction of a new Israeli settlement in the West Bank. The plan still needs final authorization from Prime Minister Ehud Olmert, but the decision infuriated Palestinians, who say settlement building cripples peace efforts.
Rice is to sit down with senior negotiators from each side next week in Washington for three-way talks. "The important thing right now is to take note of how seriously they are negotiating, to note that there was not even last year a peace process at this time, and to recognize that since this president came to office, the notion of two states living side-by-side in peace and security has become common wisdom," Rice said. Rice made a brief visit Friday to the Western Australian state capital of Perth at the invitation of Smith, who lives there. She later flew to Auckland, New Zealand, for talks with Prime Minister Helen Clark.
[Associated
Press;
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