Israelis and Palestinians aim to negotiate a 'final' peace deal after positive talks
Israelis and Palestinians have agreed to intensify peace talks aimed at reaching a final agreement, not an interim accord, US Secretary of State John Kerry has announced.
1:50AM BST 26 Sep 2013
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The two sides met on the sidelines of the United Nations General Assembly in New York at a conference of donors looking for ways to revive the fragile Palestinian economy.
Speaking before the closed-door meeting known as the Ad Hoc Liaison Committee, Mr Kerry said the goal of talks between Israel and the Palestinians is a "final status agreement," not an interim one.
On Tuesday, President Barack Obama met Palestinian Authority President Mahmoud Abbas, and he plans to meet with Israeli Prime Minister Benjamin Netanyahu next week in Washington.
Both sides expressed their commitment to the peace talks at the Ad Hoc meeting and noted the determination of the US, and Mr Kerry in particular, to move the process along.
"This is a 50-year-old conflict, and it's inevitable that we have to find closure to it," Palestinian Finance Minister Shukri Bishara said. "It's impossible to continue as is."
The new Palestinian new finance minister called the economic talks "very, very successful."
In a sign of progress made, Israel announced that it is easing some restrictions on the impoverished Gaza Strip and West Ban.
Minister of international relations Yuval Steinitzsaid that 5,000 new work permits were being issued for Palestinians to work in Israel, the opening hours of the key Allenby Bridge crossing would be extended, and new imports of some building materials would be allowed into Gaza.
"We have an interest in a strong, viable, prosperous Palestinian economy," he said.
"A better economic climate might help to create a better political climate," he added.
"And a strong Palestinian economy is good for Israel, it's good for our economy, it's good for the general atmosphere."
An International Monetary Fund staff report on West Bank and Gaza economies released last week said extensive Israeli restrictions on movement and access should be eased and eventually removed.
The donors also asked the Palestinians to rein in expenditures and take steps to "develop a business-friendly environment." They are facing a $350 million financing gap projected for this year.
The Palestinians depend heavily on aid from donors - about $1.3 billion this year, or the equivalent of nearly 12 per cent of annual gross domestic product. But the aid has been falling in recent years, along with optimism over peace.
Both sides appeared unusually upbeat after the meeting, despite the challenges. And they acknowledged they have little time to be otherwise.
"We are particularly conscious of the fact that we can't build a state that almost totally depends on foreign grants," Mr Bishara told reporters after the meeting.
But he stressed: "We have to ensure that one state is close in its standard of living to the other state." The income gap between Israel and the Palestinians remains vast.
Mr Steinitz called the meeting "positive" and said a "strong, viable Palestinian economy" helps to create a better political climate - as long as Israeli security needs are not damaged.
Both sides have resumed dialogue between finance ministers, Mr Steinitz said.
Edited by Bonnie Malkin
