Egyptian President Hosni Mubarak and Syrian President Bashar Assad (AP)
Final Peace Agreement
President Bush reaffirmed U.S. commitment to an agreement by the end of 2008, a deadline set at the Annapolis conference. He outlined some key elements of such agreement, including (1) an end to Israeli presence in the West Bank, (2) a contiguous and independent Palestinian state, (3) recognized and secure borders for Israel, (4) a resolution to the refugee issue through resettlement in the Palestinian state and compensation through international mechanisms, (5) a compromise on the issue of Jerusalem, and (6) an adjustment of the 1949 armistice lines to reflect “current realities and ensure that the Palestinian state is viable and contiguous.”
Process for Israeli- Palestinian Final Status Negotiations
Progress of negotiations since the Annapolis conference has been hindered by ongoing Qassem rocket fire from Gaza, and renewed expansion of Israeli settlements construction in East Jerusalem. On January 10 however, the day before the Preisdent’s visit, Prime Minister Olmert and President Abbas met and agreed to start final status negotiations on a three-level model for negotiations. Under this model, head negotiators Israeli foreign minister Tzipi Livni and former PA prime minister Ahmed Qureia will discuss core issues directly, and then their negotiating teams will negotiate the details. Olmert and Abbas will step in to mediate disagreements.
Livni and Qureia met for the first time under the new negotiations model on January 13. They designated six issues as the focus for their future discussions: Jerusalem, West Bank settlements, Palestinian refugees, borders, security and water resources. They also decided that their future negotiations would take place under a low media profile.
Road-Map Action
At the Annapolis Conference, the parties agreed to immediately implement the obligations of the 2003 roadmap. A joint American, Palestinian and Israeli monitoring mechanism was set up, which was to be led by the United States.
The White House announced on January 10 that Israeli and Palestinian progress towards compliance with the roadmap will be supervised by Lieutenant General William Fraser. General Fraser is an Air Force officer and the assistant to the Chairman of the Joint Chiefs of Staff, with responsibilities focusing on international relations and politico-military concerns. General Fraser will monitor implementation of the Road Map.
General Fraser will join General James Jones (security envoy, advising Secretary Rice, appointed in November 2007) and Lieutenant General Keith Dayton (U.S. security coordinator, in charge of the training of Palestinian security forces, appointed in 2005).
Economic Investment Initiatives
Following the Annapolis Conference, nearly 90 countries and international organizations gathered in Paris on December 17 for a major Palestinian donors conference. The participants pledged $7.4 billion over the next three years support Palestinian development, exceeding the $5.6 sought initially.
President Bush met with Quartet special envoy Tony Blair on January 11 for further discussions on economic development and institution building in Gaza and the West Bank. The first of Blair’s development projects, the sewage treatment plant at Beit Lahia in Gaza, is expected to have its first stage completed in March 2008. International support for institution building is considered vital for the establishment of a secure and stable Palestinian state, and Blair, along with other international organizations, is planning or currently executing a variety of development projects.

