Egyptian President Hosni Mubarak and Syrian President Bashar Assad (AP)
Progress on Negotiations
Prime Minister Ehud Olmert and President Mahmoud Abbas convened their regular monthly meeting on February 19. They reviewed the issues, but did not report significant progress. In an effort to accelerate the pace of negotiations, they will meet again in the first week of March.
Negotiating teams led by Foreign Minister Livni and former PA Prime Minister Quriea continue to meet weekly. Starting next week, new teams of Israeli and Palestinian government experts will supplement their efforts. These teams will negotiate specific issues such as trade, water usage, and security that may form part of an agreement with a Palestinian state. Livni and Quriea will continue working on the final status issues.
Slow progress in negotiations has fueled skepticism from leaders such as Palestinian Prime Minister Salam Fayyad, Israeli Prime Minister Ehud Olmert, and French Foreign Minister Bernard Kouchner expressing doubts over the future of the peace process and whether reaching an agreement by December 2008 was a realistic goal. In a meeting with Jordan’s King Abdullah however, Abbas said that an agreement must be reached this year or it may never occur.
Olmert and Abbas have different views on the end results of the negotiations. Olmert is seeking an agreement on “basic principles” for a Palestinian state that would be implemented once Abbas gains control of Palestinian militants and Hamas. Abbas wants a full-fledged agreement that will allow him to declare statehood.
Progress on Road Map Implementation
During their monthly meeting on February 19, Olmert and Abbas reportedly agreed to begin working with a U.S. mediator to investigate issues of non-compliance with the 2003 road map. Israeli officials have not yet confirmed this agreement.
Unauthorized Outposts
The Associated Press reported on February 20 that 27 new mobile homes are being constructed in Eli, a West Bank enclave, with the knowledge of the Israeli government. They had previously reported that a similar unauthorized outpost was established in Maskiot on February 15.
On February 25, Vice Prime Minister Haim Ramon stated that the government wants to reach an agreement with settlers over the future of unauthorized outposts. He said that of the estimated 100 outposts, a third must go, a third can say, and a third are up for negotiation. He went on to say that Israel would remove the 26 outposts established after March 2001.
Jerusalem
Olmert is facing opposition both from the Shas and Labor parties, members of the governing coalition, and from Knesset members in his own Kadima party regarding the status of Jerusalem. Olmert announced on February 17 that the Abbas had agreed to his plan to wait until the end of negotiations to discuss the status of Jerusalem, but the PA denies that they are part of such an agreement.
Regional Efforts
PA Prime Minister Salam Fayyad spoke at the Jeddah Economic Forum on February 25, calling the economic situation in the Palestinian territories “inadequate in meeting even half the needs of the region,” but acknowledged that the Palestinians were receiving financial support from the Arab League and Saudi Arabia. He called upon the Middle Eastern business leaders present to explore investment opportunities in the Palestinian territories.
In an expression of their frustration with the slow movement of the peace process, the Arab League has threatened to withdraw its offer of diplomatic relations with Israel in exchange for Israeli withdrawal from the occupied territories unless Israel gives a positive response to their 2002 Arab Peace Initiative.
Economic Development Efforts
Chairs of the U.S.-Palestinian Public-Private Partnership, launched in December 2007 visited the West Bank where they selected sites for upcoming projects. The partnership announced that it was providing loans from its small business loan fund program to Palestinian small business-owners. Planned future projects include youth centers, call centers, and industrial zones where U.S. businesses could invest.
The United Nations held a seminar on assistance to the Palestinian people on February 19 in Amman, Jordan. The plenary sessions of the seminar focused on the importance of economic assistance for the establishment of a viable Palestinian state. This echoed Quartet Envoy Tony Blair’s February 5 statement during his meeting with Israeli president Shimon Peres that economic development would give a strong push to peace negotiations
Jericho, a Palestinian town in the West Bank, linked to the Jordanian power grid on February 25. The move was intended to decrease the dependence of Palestinians on Israel for essential utilities. The PA is part of an eight-nation Arab group working to set up an interconnected power grid.

