The Palestinians expect the Arab states to call on Israel to accept the Arab Peace Initiative unchanged, sources from the Palestinian delegation to the Riyadh Arab League summit told Haaretz Monday.

PLO negotiations chief Saeb Erekat described the initiative on Monday as "one of the most important to the Arab world. A plan that we, the Arabs, must accept."

Erekat says there is no room to negotiate over the peace initiative, which was accepted by the Arab League at the Beirut summit in 2002.

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"There will be no negotiations with Israel over the initiative. There is also no demand to alter it by any of the parties," he added.

Israel has expressed reservations with some of the elements in the peace initiative, particularly two explosive issues: the refugees and Jerusalem.

The Arab peace initiative calls for complete normalization of relations between Israel and the Arab League states, in return for an Israeli withdrawal to the 1967 lines and a negotiated settlement to the refugee issue.

However, Saudi Arabia's foreign minister suggested Monday that Arab leaders would be willing to consider changes to their 2002 peace offer in order to make it compatible with new developments.

The statement from Foreign Minister Saudi al-Faisal came on the eve of the summit. So far, Arab leaders have publicly rejected Israeli calls for changes to the 2002 offer.

"We are expected to take notice of new developments, which require additions and developments in whatever is offered for our leaders about the issues and problems ... in order for their resolutions to be compatible with what is dire and new," Faisal said.

However, the Palestinians believe that the Arab League needs to be firm about what its peace initiative does and does not offer Israel.

Palestinian Authority sources also hope that the Arab states will commit to continue providing the Palestinians with substantial economic assistance, currently an estimated $660 million annually.

The Palestinian sources said the PA delegation would also like to see in the summit's concluding statements an expression of support for the recently established PA national unity government.

Arab diplomats said privately on Monday that Arab leaders were seeking fresh ways to moderate their position without being seen as giving in to Israeli or American demands to change the 2002 offer.

Arab countries including Egypt, Jordan and Saudi Arabia would be proposing a repackaged deal, said the diplomats, speaking on condition of anonymity because of the sensitivity of the discussions.

The Jordanian and Palestinian foreign ministers said the Arab ministers meeting in Riyadh on Monday agreed to form a committee to promote the initiative with the United Nations, the United States, Russia and European Union.

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