U.S. Secretary of State Condoleezza Rice will discuss steps for strengthening Palestinian Authority Chairman Mahmoud Abbas on her visit to Israel this week. According to an Israeli diplomatic source, the U.S. administration wants to shore up Abbas' position and weaken Hamas by "creative" means, one of which would be the moving of funds to the PA through Abbas.

Prime Minister Ehud Olmert will meet with President Bush at the White House during his visit to the U.S. next month to take part in the annual convention of the United Jewish Communities (UJC) in Los Angeles.

The U.S. administration wants to advance the diplomatic process between Israel and the Palestinians, but understands that the two governments are too weak at this point to seriously discuss the core issues of a permanent settlement. Washington is therefore looking for interim ways of improving the economic situation in the PA and giving Abbas the credit.

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Among other steps to be brought up by Rice is the strengthening of the presidential regime and security forces loyal to Abbas, as well as promotion of the plan proposed by U.S. General Keith Dayton for operation of the crossings between the Gaza Strip and Israel in a way similar to the manner in which the Rafah crossing is run. The plan calls for the crossings to be run by Abbas' presidential guard assisted by foreign observers. Defense Minister Amir Peretz has expressed his support for the plan.

Rice will also be promoting an agreement she mediated last year to facilitate movement between Gaza and the West Bank, which was frozen after the escalation of violence in Gaza.

Rice will arrive in Israel Thursday, and is scheduled to meet with Olmert, Foreign Minister Tzipi Livni and Peretz. Rice will also meet with Abbas in Ramallah. Israel's ambassador to the U.S., Danny Ayalon, held preparatory meetings in Washington with senior administration officials ahead of Rice's visit. Ayalon will be arriving in Israel with Rice.

Olmert's meeting with Bush, which will focus on the implications of the war in Lebanon and the diplomatic process with the Palestinians, will be the second since Olmert took over as prime minister at the beginning of the year. The Israeli diplomatic source said Bush will not be coming to the Middle East any time soon, and prefers to invite its leaders to Washington.

Rice will also be visiting Cairo during the week, where she will meet with the Friends of Peace, a forum of foreign ministers from the moderate Arab countries, to discuss the rehabilitation of Lebanon as well as regional responses to Iran and the political process between Israel and the Palestinians. In its efforts to create an "alliance of moderates," the U.S. had initially wanted to call the meeting in Jeddah, Saudi Arabia, but Egypt insisted on hosting the meeting.

Senior administration officials expressed satisfaction over the weeked with Livni's statements in Yediot Ahronoth calling for an evacuation of the illegal outposts in the West Bank. The Americans have avoided the issue in recent months, and it is not clear whether Rice will want to bring it up during her visit this week.