U.S., Palestinian leaders call talks 'good'

Erakat looks on as Powell answers a reporter's question.

WASHINGTON (CNN) -- U.S. Secretary of State Colin Powell and three top Palestinian officials emerged from a 75-minute meeting Thursday on political, economic, humanitarian and security concerns in the Middle East and described the session as "good," "in-depth" and "serious."

Powell told reporters he assured the Palestinian delegation the Bush administration is "committed to doing everything possible to find a way forward." Despite the "difficulties that exist," he said, "we will not be deterred."

The Palestinian Authority was represented by chief negotiator Saeb Erakat, Interior Minister Abdel Razaq al-Yihya, and Economy, Industry and Trade Minister Maher al-Masri.

Erakat reiterated Powell's assessment, adding a statement on security concerns and pressure by the United States and Israel to reform the Palestinian Authority, including the removal of leader Yasser Arafat.

"The Palestinian reform is Palestinian reform. It's done for Palestinian interests, by Palestinian will. It is not being dictated by anybody," Erakat said.

"We hope this reform will be helped and encouraged by stopping the attempts at reform that the Israeli occupation constitutes."

Al-Masri, however, said Arafat "was not a big issue at all" during the meeting.

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Erakat blamed Israel for a humanitarian crisis in Palestinian areas, saying towns, villages and refugee camps had turned into "the biggest prison in history."

Powell said he spoke Thursday with U.N. Secretary-General Kofi Annan and that Annan is sending a representative to the region this weekend to assess the humanitarian situation.

Erakat also called for an "action plan" and a timetable for achieving a Palestinian state, which the Bush administration supports.

He said he was submitting ideas to the Bush administration during the talks on how to get to the "endgame" of a Palestinian state within three years.

A senior State Department official said the Palestinian delegation reviewed their reform efforts with Powell and that al-Yihya talked at length about his ideas on how to improve the Palestinian security apparatus.

The Palestinian delegation met earlier in the day with National Security Adviser Condoleezza Rice.

Arafat, rejected by the Bush administration as a hindrance to peace in the region, was not mentioned in the session, according to Sean McCormick, a National Security Council official.

Along with the humanitarian crisis, Rice and the Palestinians discussed the need for wide-ranging change in several areas, including educational, constitutional, electoral and security reforms.

Erakat said Wednesday he does not want the Bush administration to negotiate a settlement in the Middle East, but wants it to monitor implementation, once the Israelis and Palestinians reach agreement.

The three Palestinian representatives will have working-level meetings Friday at the State Department and will meet with the deputy administrator of the U.S. Agency for International Development. Al-Yihya is expected to meet with CIA Director George Tenet.

The talks came amid continuing conflict in the region. One person was killed Thursday and several wounded by Israeli forces besieged by stone throwers in a Gaza village.

In Jerusalem, high-level security talks between Palestinian and Israeli officials ended early, according to Palestinian sources, because Israel reneged on an offer to withdraw from Bethlehem. One Palestinian source described the talks as "a complete failure."

According to the Palestinian sources, the Israeli delegation said Israel would agree to withdraw from Gaza, but not from Bethlehem as Israeli Defense Minister Benjamin Ben-Eliezer offered at the Monday meeting.

The sources said the Israeli delegation urged the Palestinians to arrest those wanted by Israel and said suicide bombers were still finding their way into Israel from West Bank cities, making it impossible for Israel to hand over security control of Bethlehem, the sources said.

The Palestinians said they sharply disagreed with that view, arguing that suicide attacks are out of their control.

They said they rejected the "Gaza-only" offer because they believe the military occupation in the West Bank is a far bigger problem than it is in Gaza.

Just before the late-night meeting, the Palestinian Cabinet said it would agree to the deal proposed Monday, allowing for the withdrawal of Israeli forces from Gaza and Bethlehem.

In the security talks earlier this week, Ben-Eliezer had said that if the Palestinians could demonstrate security control in Bethlehem, Israel would be willing to withdraw from other cities it has occupied on the West Bank.

-- CNN State Department Producer Elise Labott contributed to this report.