MIDDLE EAST:The problem for Palestinians and Israelis is whether they can sell concessions they make to their people, writes Peter Hirschbergin Jerusalem
President Shimon Peres this week described the discussions between prime minister Ehud Olmert and Palestinian leader Mahmoud Abbas over the formulation of an agreement of principles as "serious". A few days earlier, Mr Olmert told a delegation from the US House of Representatives that he has been meeting Mr Abbas to establish principles "regarding the core issues" of the conflict between Israel and the Palestinians.
Sources close to Mr Abbas concurred, saying the two leaders had been holding talks to discuss issues such as the future borders of a Palestinian state, the status of Jerusalem and the fate of Palestinian refugees, which are all at the heart of the conflict between the two peoples.
The fact there are contacts between the sides on peace-related issues after such a long hiatus, is no guarantee of a breakthrough. But it does indicate that both Mr Olmert and Mr Abbas are aware they cannot afford to arrive empty-handed at a US-backed regional conference, scheduled for November.
The difficulties of formulating an agreement of principles on the core issues, including the creation of a Palestinian state, were on display for all to see this week. In the framework of the current talks, Israel has proposed a safe passage route that will allow Palestinians to travel between the West Bank and Gaza Strip and which will be under control of the Palestinians, but will remain under Israeli sovereignty.
Within hours of the proposal being reported in the media, Mr Abbas' office had issued a denial. As always, the problem for leaders on both sides is whether they can sell the concessions they do make on core issues to their people.
Take, for instance, the issue of a future border between Israel and an independent Palestine. Israel has proposed, as a first stage, a Palestinian state in "temporary borders". For Abbas, that's a non-starter. He knows his people will reject the idea on the grounds that temporary in the Middle East often means permanent.
In evidence, the Palestinians just have to point to the dozens of illegal settlement outposts that dot the hills of the West Bank and which successive Israeli leaders have been promising to take down for the last six years.
By contrast, Mr Olmert is aware that Israelis fear that any final agreement with the Palestinians will prove only temporary.
What will be needed are creative formulations. According to one report this week, the compromise formula on the issue of borders will include the idea of temporary borders being established for a Palestinian entity in the first stage, but without a Palestinian state actually being declared until there is an agreement on final borders.
On the issue of Jerusalem, the sides are discussing an arrangement whereby Israel will ultimately transfer most of the Arab neighbourhoods in the divided city to the Palestinians. With regard to refugees, Israel would recognise their suffering and would participate in an internationally-led effort aimed at rehabilitating them in a future Palestinian state.