Israelis and Palestinians resume peace negotiations

Albright, who announced the agreement after meeting with both sides in New York, called the agreement "a medium step" toward peace in the region. The months since the last talks were broken off have been marked by violence and recrimination.

A Palestinian demand for a statement disapproving further Israeli settlement construction on the West Bank was put off until the talks are resumed Oct. 6 in the region.

"We all understand the need to create the right kind of environment," Albright said at a news conference.

American mediator Dennis Ross will assist in the talks, which will be shifted to Washington on Oct. 13.

AP PHOTO U.S. Secretary of State Madeleine Albright looks on as Israeli foreign minister David Levy (left) shakes hands with Palestinian Authority negotiatior Mahmoud Abbass (right) before their meeting in New York.

Albright said the negotiations would focus on implementing the 1993 and 1995 Oslo agreements between Israel and Yasser Arafat's Palestinian Authority. These call for a series of military pullbacks by Israel on the West Bank while permitting Jewish settlers to remain.

There was no indication Albright had made headway in her effort to accelerate the negotiations so that such rock-bottom issues as Palestinian demands for a state and for part of Jerusalem be taken up right away.

The talks broke down in March over Israel's attempts to expand Jerusalem's Jewish character and attacks on Israel by militant Islamic groups.

Albright said, "We all agree there is no place for terrorism and violence in the process."

She called her joint meeting with Israeli Foreign Minister David Levy and with Mahmoud Abbas of the Palestine Liberation Organization productive, and declared: "I believe we are headed in the right direction."

"We have arrested the downward spiral and been able to take a medium step," she said.

The Clinton administration has publicly urged Israel not to take steps considered provocative by the Palestinians. The U.S. position is that expanding settlements undercuts chances for successful peace talks.

Levy, meanwhile, made plain in a speech to the U.N. General Assembly that his government remained concerned about terrorism and would measure what it did in dealing with Arafat by the security impact on Israel.

"The citizens of Israel have taken upon themselves great risks for peace," Levy said. "But there is none among them who is willing to continue to pay the bloody price that is being demanded in the name of peace."

The first order of business for Israel and the Palestinians is an overdue Israeli pullback on the West Bank. Under the Oslo accords, Israel decides how far back to pull its troops and turn administrative control over to Arafat's Palestinian Authority.

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