Mideast summit hopes fade

Clinton had said earlier that the two sides were closer than ever to an agreement

In this story: Both sides must make concessions Clinton waiting for response RELATED STORIES, SITES

CAIRO, Egypt (CNN) -- Hopes for a summit in Sharm el-Sheikh between Egyptian President Hosni Mubarak, Israeli Prime Minister Ehud Barak and Palestinian Authority President Yasser Arafat faded early Thursday morning.

A source in the Egyptian presidency told CNN that the meeting between the three leaders had been called off, but other sources in the region and in Washington said that a three-way meeting between the leaders had never been confirmed.

CNN has also learned that both Barak and Arafat plan to travel to Egypt on Thursday for bilateral meetings to discuss a U.S. proposal for a Middle East peace settlement.

In Jerusalem, Deputy Defense Minister Ephriam Sneh told CNN there is no meeting planned between Arafat, Barak and Mubarak "for the time being."

After two long meetings Wednesday of the Israeli Cabinet, ministers decided that President Clinton's proposals for a peace accord were "an acceptable basis for negotiations," Sneh said.

VIDEO In a White House news conference, U.S. President Bill Clinton says range of issues is narrowing (December 27) Play video (QuickTime, Real or Windows Media) Barak and Arafat are considering U.S. peace proposal. CNN's Matthew Chance reports (December 27) Play video (QuickTime, Real or Windows Media) CNN's Mike Hanna talks to Chief Palestinian Negotiator Saeb Erakat about the upcoming peace Play video (QuickTime, Real or Windows Media) CNN's Mike Hanna talks to former Prime Minister Shimon Peres about the upcoming peace negotiations Play video (QuickTime, Real or Windows Media)    AUDIO Former Israel PM Shimon Peres: "This is like committing suicide." 382k/20 sec. AIFF or WAV sound "The government must decide. That is our business." 430K/34 sec. AIFF or WAV sound     INTERACTIVE Key Issues     RELATED Why Bibi Bowed Out For Barak, Another Small Victory     MESSAGE BOARD Mideast peace     RESOURCES In-Depth: Israel Election 2001

He said a would depend on the Palestinians' acceptance of Clinton's suggestions.

"So far it is not officially canceled," he said. "There was an idea promoted by the Egyptian president, Mubarak, and the details of such a meeting at this very moment are not known. The scheduled time is tomorrow evening and it's a long, long time here. Many things can be changed."

Sneh said the Israelis were concerned about access to holy sites in Jerusalem, security issues and Palestinian refugees. But he said he believed it is possible to work those issues out.

"We still believe that there is a way to achieve quite soon an agreement, but it takes two to tango and the Palestinian side has to display a flexibility," he said.

Late on Wednesday, the deadline set for the parties to respond to the U.S. proposals, the Palestinians made a formal response which they said sought more details of the plan. A U.S. official characterized the response as "not an acceptance or a rejection" of the Clinton plan.

On Wednesday, Clinton had said that the Israelis and Palestinians were closer than ever in reaching a peace settlement.

"The issues are extremely difficult, but they are closer than they have ever been before, and I hope and pray they seize this opportunity," said Clinton during a White House news conference, where he announced the appointment of a lawyer to fill a vacant seat on the 4th U.S. Circuit Court of Appeals in Virginia.

"(Israeli) Prime Minister (Ehud) Barak has said he would accept and continue the negotiations if the Palestinians would, and we will see what happens," said Clinton.

Asked if he had heard from the Palestinians, Clinton declined to comment, saying: "The less I say, the better."

"There are a lot of things going on now and will be in the next several days," said Clinton, noting that "we have attempted to narrow the range of outstanding matters, in a way that meets the essential needs of both sides."

Earlier on Wednesday, a top Palestinian official said that more details are needed before Palestinians can respond to Clinton's proposals aimed at building a foundation for a final peace agreement with Israel.

"The issues that we're dealing with require details -- details on the geographic maps, details on specific issues -- because we don't want to end up saying a positive answer and then once we go and inquire about something, they say ... 'It's not going to open' (for discussion), said chief Palestinian negotiator Saeb Erakat. "Then you have an explosion."

Clinton presented the proposals at the end of meetings last week between Palestinian and Israeli officials in Washington.

Sources say Clinton's guidelines offer compromises on several of the most contentious matters, including the final status of Jerusalem and the fate of hundreds of thousands of Palestinian refugees who fled Israel since 1948.

Both sides must make concessions

The proposals, according to sources, give sovereignty to the Palestinians over several Arab neighborhoods in east Jerusalem and the Muslim compound atop Haram al-Sharif -- called Temple Mount by Jews. The Israelis would have sovereignty over the site of the Western Wall at the base of the hill.

Two mosques sit within the confines of Haram al-Sharif (Noble Sanctuary), marking a spot known as the third-holiest in Islam. But the site is also the location of ancient Jewish temples -- and the one piece of temple wall that remains standing -- making it the most sacred spot for Jews.

Sources say the proposals also make the ancient city the capital of both Israel and the as-yet-undeclared Palestinian state.

In return for concessions on Jerusalem, the proposals are said to call for the Palestinians to relax their demand that Palestinian refugees be allowed to return to homes in Israel. The proposals would allow the refugees to settle in the Palestinian state with financial compensations from Israel.

Former Israeli Prime Minister Shimon Peres, a member of Barak's coalition, told CNN that the proposals called for hard decisions and would be difficult to sell to the Israeli people.

"By and large it is a time of decision," Peres said. "It is a cabinet that is ready to decide. It is a cabinet that knows not only the price that it should have to pay historically, but the price that it should have to pay politically."

Clinton waiting for response

Clinton had been expecting a response from the Israelis and Palestinians on Wednesday before he decided whether to summon the leaders to Washington for another attempt at making the peace deal final. A summer summit at Camp David fell apart over many of the same issues included in the latest proposals.

Earlier this week, Barak said that the Israelis would accept Clinton's proposals if the Palestinians did the same, but Erakat insisted that the proposals were so far too vague. They have sent a letter to both Clinton and the Israelis, he said, asking for further clarification.

Israeli Foreign Minister Shlomo Ben-Ami, who attended the Washington meetings with Erakat, said that the Israelis had some reservations about the proposals as well, adding that he thought the answer from both sides would be "Yes, but ... "

Arafat, celebrating the Muslim holiday of Eid al Fitr marking the end of the holy month of Ramadan, told reporters that the holiday was "a decisive one."

"God willing, it will represent a strong start in which a Palestinian boy and girl will raise the flag of Palestine over the walls, churches and minarets of Jerusalem," he said.

CNN Jerusalem Bureau Chief Mike Hanna and Correspondent Matthew Chance contributed to this report.

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Mideast talks inconclusive
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Israeli, Palestinian negotiators take up difficult issues with Clinton
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Mike Hanna: Mideast officials on each side under pressure at home
December 22, 2000
Mideast negotiators 'reducing the differences'
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