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Isrealis blame halted talks on Palestinians

JERUSALEM - Israel called a time-out in peace talks yesterday, saying the Palestinians hadn't budged from their hard-line positions. Palestinians called the decision regrettable.

With time running out for Prime Minister Ehud Barak's government, final word on the fate of the negotiations is expected from the United States, which is drafting proposals that could be presented as early as the weekend in an effort to conclude a deal.

Barak's security adviser, Danny Yatom, said the time-out would last for a few days at most and Barak himself played down the importance of the Israeli-Palestinian meetings that have been held since the two sides gathered at Camp David in July.

Later yesterday, Barak spokesman Gadi Baltiansky said negotiators from both sides would meet today to discuss a basis for renewing the talks.

Yatom said Israel had called for the break because it needed some time to assess the negotiations. He said there was no crisis atmosphere.

"There is no doubt that the Palestinians need to be not only good in public relations, but also straightforward in the negotiations," Yatom told Israel army radio, referring to Israeli complaints that the Palestinians have rolled back on understandings reached in previous sessions.

The Clinton administration said the United States would not abandon its efforts.

"Time is not unlimited. But we also understand that this entire process has its ups and downs, its moments of frustration on both sides," White House spokesman Joe Lockhart said, "Since Camp David, there have been a series of discussions ... and it's certainly our hope that those will continue."

Talks are hung up over who will be sovereign over a key Jerusalem shrine sacred to Jews as the Temple Mount and to Muslims as Haram as-Sharif, or Noble Sanctuary.

The Palestinians insist on full control of the shrine, home to two major mosques marking the spot where tradition says Prophet Muhammad ascended to heaven. They have said that at most they would allow symbolic Islamic sovereignty there.

Israel has suggested it is ready to consider less than full Israeli sovereignty, but has ruled out Palestinian or Islamic control over the area where the Jewish temple, the most sacred shrine of Judaism, stood in biblical times.

Barak said yesterday that Palestinian leader Yasser Arafat has not budged since the Mideast peace summit at Camp David in July, which broke down over the Jerusalem issue. Barak suggested that there was no point in negotiating unless Arafat showed signs of flexibility.

"Negotiations will be resumed when Chairman Arafat will be ready to take the ideas that were raised at Camp David by President Clinton or the ideas that were raised by the Americans since then as a basis for negotiation," Barak said.

Palestinian negotiator Saeb Erekat said Israel was not seriously engaged in the talks and was preparing the ground for "abandoning the peace process."

Erekat said several negotiating sessions scheduled for this week had been canceled and called the Israeli decision regrettable.

Nasser Al-Kidwa, the Palestinian U.N. observer, told the General Assembly's ministerial debate the Palestinians were surprised by the move but were still committed to the peace process.

"We hope that the Israeli positions are tactical and that the Israeli side in the final analysis will respect its commitments to the basis of the peace process," he said.

Israel and the Palestinians have made some progress on core issues, including the future borders of a Palestinian state and the fate of Palestinian refugees.

Both sides have accused each other in recent days of backtracking on agreements reached at Camp David.

Palestinian negotiators have said U.S. compromise proposals were to be completed as early as the weekend.

Philip Reeker, a deputy spokesman of the U.S. State Department, said Washington was in contact with both sides. "Both have made clear they want to continue to look for ways to reach an agreement and we will continue to assist their efforts," he said.

Reeker said he did not know when the next U.S. contact would be made.

U.S. officials have not spoken publicly about compromise proposals. However, negotiators have said one idea is to transfer sovereignty over the key Jerusalem shrine to the five permanent members of the U.N. Security Council.

The Palestinians have rejected the proposal, but Israeli media reports have said Barak was willing to consider the idea.

2 French journalists rescued by troops

ZAMBOANGA, Philippines - Two French television journalists held more than two months by Muslim rebels in the southern Philippines were rescued today by government troops, President Joseph Estrada said.

Estrada said troops also hoped to rescue an American hostage, Jeffrey Schilling, later in the day. The Abu Sayyaf rebels have been holding 19 hostages on remote Jolo island.