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Peace talks with the Palestinians broke down in late September, three weeks after they began
-- after Israel resisted Palestinian and U.S. pressure to extend a moratorium on new West Bank settlement construction. Under U.S. pressure, Netanyahu has since agreed to a new, 90-day moratorium. But he is having trouble working out a formula with Washington that would mollify hard-liners in his coalition who want east Jerusalem exempted from the moratorium. Indirect Turkish-mediated peace talks with Syria broke down in late 2008.
[Associated
Press;
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