http://www.jpost.com/Israel/Article.aspx?id=191160

Fatah official says two-state solution is over 
By KHALED ABU TOAMEH,  HILARY LEILA KRIEGER  AND HE  
10/12/2010 22:54 


Mahmoud Aloul: Israel's racist policies meant to undermine talks; US State 
Department spokesman says wants to achieve clear path allowing Israel, 
Palestinians to continue peace process. 
  
The Palestinian Authority has concluded that the peace process based on a 
two-state solution has failed, a senior Fatah official said on Tuesday.

His statement came as PA officials repeated their rejection of Prime Minister 
Binyamin Netanyahu's proposal to extend the settlement construction moratorium 
if the Palestinian leadership recognizes Israel as a Jewish state.



But the US sought [desperately] to keep talks going, and called on the 
Palestinians to present their own counter-proposal to keep things on track.

Mahmoud Aloul, member of the Fatah Central Committee, said that "Israel's 
racist policies. were meant to undermine the peace process."

"The Palestinian Authority made every effort to avoid reaching this conclusion, 
but Israeli racist policies led to the failure of the peace process," he added.

Aloul accused the US Administration of failing to exert pressure on Israel to 
alter its policies and halt settlement construction.

"The Americans left us no choice but to stop the peace negotiations," he said. 
The Palestinian leadership has briefed the Arab leaders on the difficult 
situation and we have asked them to start taking real measures on the ground.

PLO negotiators Saeb Erekat and Nabil Shaath also reiterated their refusal to 
recognize Israel as a Jewish state.

Another PLO official, Yasser Abed Rabbo, accused Netanyahu of seeking to 
destroy the image of President Barack Obama in the Middle East by raising such 
a demand.
In Washington, however, the State Department continued to urge the sides to 
come to a compromise and called for Palestinians to make clear what would be 
acceptable to them in lieu of a declaration that Israel is a Jewish state.

"We want to see both of them stake the process. We want to see both of them 
offer their thinking about what needs to be, you know, advanced and agreed to 
that allows both sides to stay in these negotiations," State Department 
Spokesman PJ Crowley said Tuesday. "Prime Minister Netanyahu has offered his 
thoughts on both what he's willing to contribute to the process, what he thinks 
he needs for his people out of the process, we would hope that the Palestinians 
would do the same thing."

Crowley called on "both parties to continue to create conditions for the direct 
negotiations to continue."

The US has made certain proposals to Israel, widely understood to include 
additional military assistance and diplomatic support, in exchange for a two or 
three month extension of the settlement moratorium.

But Crowley said it's ultimately up to the two sides to figure out what terms 
would work. "It's not for us to say, 'This is a pretty good deal; you ought to 
take it.'"
He described the current impasse as a "pause in the action" while issues 
connected to the settlement moratorium are worked through."

A senior State Department official, Jeffrey Feltman, is on his way to visit 
Egypt, Saudi Arabia and Morocco in part to try to advance the peace process.

In contrast to the tough words from the Palestinian, an Israeli official said 
Tuesday that the "ball is still in play, this is still a work in process."

"If the Palestinians are willing to engage seriously in a process of give and 
take, Israel is willing to show flexibility," the official said. "But it has to 
be a process of give and take, not demand and take."
The official said the whole moratorium matter is an "artificial issue." The 
vast majority of construction is in large settlement blocs that Israel, 
according to various proposals that have been discussed over the years, would 
retain in any agreement, the official said. The amount to be built outside the 
major settlement blocs is minuscule and not going to change anything, he added.
"No settlement growth in the coming year would influence the final map of 
peace, so for that reason this is an artificial issue," he explained.

But Fatah spokesman Ahmed Assaf said resuming settlement construction has 
"already foiled the peace talks."Netanyahu's new demand is an obstacle to the 
resumption of the peace talks," he said.

He also accused Netanyahu of thwarting US and EU efforts to achieve peace in 
the region.

"Netanyahu knows in advance that the Palestinians won't accept this demand," 
the spokesman said. This new condition is aimed at abolishing the right of 
return for the refugees and expelling the more than one million Palestinians 
living in Israel.

He added that if this was the price that Israel was demanding in return for 
freezing construction in the settlements, ½what price would it ask for in 
return for removing the settlements and withdrawing from the occupied 
territories? 

One Washington source suggested that Netanyahu's move had not worked well with 
American officials, as it hadn't come across as a sincere bid to resolve the 
issue given that the Palestinians were sure to reject it.

"It just looks like he doesn't want to do it [extend the freeze], and he just 
wants to put it on the other side," he said of Netanyahu apparently trying to 
shift responsibility - and blame - to the Palestinians.

 "I don't think it plays well here," he said of Netanyahu's gesture, "but I 
don't think anybody wants to criticize it." 

RELATED:
Editorial: Trying again
PA: US working on 3-month freeze extension to save talks

[Non-text portions of this message have been removed]



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