Senior officials from Israel, Jordan and the Palestinian Authority held talks today in Japan in a bid to lay the groundwork for peace by improving the Palestinian economy.
Japan, which is seeking a greater role in the Middle East, hopes the talks will lead to a deal on its signature project in the region - starting an agro-industrial park in the West Bank.
The proposed project near Jericho "demonstrates an understanding of the relationship between prosperity and ensuring a lasting peace of all of our region," Jordanian Foreign Minister Salah Bashir told reporters at the talks.
But he said the best way to resolve the decades-long Israeli-Palestinian conflict was to deliver on a two-state solution endorsed by a summit last November in Annapolis, near Washington.
"The Palestinian-Israeli conflict is the core issue of the Middle East. If we solve that we have better ability to address the other political challenges but also the prosperity and economic challenges," Mr Bashir said.
Japan was eager to hold the meeting before it hosts next week's summit of the Group of Eight rich nations, where the Middle East is expected to be on the agenda.
Japan, the world's second largest economy, has been seeking a higher profile in the Middle East as part of its effort to become a larger player on the global stage.
Japan has portrayed itself as a neutral broker in the Middle East due to its lack of historical ties. But it has long maintained friendly ties with Arab states and Iran on which the resource-poor Asian power depends heavily for oil and gas.