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Foreign Minister Tzipi Livni (Left) and Palestinian Prime Minister Salam Fayyad in Davos on Thursday. (AP) Last update - 07:44 25/01/2008 Israeli, Palestinian leaders mull peace prospects at Davos By The Associated Press Tags: Tzipi Livni, Davos  DAVOS, Switzerland - Is it really possible that Israel and the Palestinians will reach their elusive peace treaty by the end of the year, as envisioned by U.S. President George W. Bush? At the World Economic Forum on Thursday, top leaders from both sides joined Tony Blair - now the Quartet's envoy to the Middle East - for a session that provided the familiar recriminations, underscored the almost unfathomable complexities on the ground, and ended with some hope and mutual appreciation. President Shimon Peres began on a positive note. "I believe that both s Advertisement ides today are convinced that war is not an option," Peres said. "We feel profound desire to bring an end to this conflict that served nobody and harmed everybody." And Foreign Minister Tzipi Livni said Israel sincerely wants to establish a Palestinian state in the West Bank and Gaza. "We cannot afford a failure," said Livni, who heads the Israeli team to talks launched after the November Mideast peace conference in Annapolis, Maryland. But Palestinian Prime Minister Salam Fayyad brought the proceedings down to earth - or the tiny patch of it called Gaza. In recent days Israel cut off some fuel supplies to the strip in response to persistent rocket attacks, and what followed were massive power outages and thousands of desperate residents breaking through the border with Egypt. "Sorry I have to give you a downbeat assessment of what is going on," said Fayyad, a dapper and widely respected economist who won plaudits for imposing fiscal order and accountability to a once chaotic Palestinian Authority. "Things in my assessment did not proceed as well as was hoped for after Annapolis." He blasted Israel for continuing to tolerate Jewish settlement construction, and said it was essential Israel allow freer travel in the West Bank and reopen its border crossings with Gaza. The crossings, a key conduit for goods and workers, have largely been closed since the militant group Hamas seized control of the territory last summer. This was met with some openness by Defense Minister Ehud Barak, a former military chief and Israel's prime minister from 1999 to 2001. "We removed some of the roadblocks and we removed very few of the checkpoints, but we can continue," Barak said. "We will look into it and consider it... The moment the effectiveness of the security forces of the Palestinians will be (similar) to the effect of the Jordanian security forces, we will be ready to consider a far-reaching loosening of the situation." He said Israel wanted "to make sure Palestinians will feel that the goodwill of the rest of the world is transformed into real action on the ground." Fayyad took Barak at his word. "What Ehud Barak said about the crossings in Gaza gives us all reason for some hope," he said. "I hope the consideration of this issue can be expedited." "There should be no question that we do take seriously Israel's security concern," he added. "We really mean it. We are trying to do the very best we can." Barak reciprocated the positivity. "I can tell you working with Prime Minister Fayyad gives us, and I believe the whole world, reason for hope," he said. "He is an assertive Palestinian patriot but one ... committed to honesty." "I don't want to praise him too much in order not to damage him," Barak added, drawing laughs. Blair asked what would happen if rockets stopped raining on Israel from Gaza, as has been the case for years, and especially since Israel pulled troops and settlers out of the strip in 2005. Would it have a transforming effect on Israel's policy? As Barak struggled to compose an answer Livni interjected: "Yes." "I just think that sometimes needs to be emphasized," said Blair, satisfied. Livni said her talks with a Palestinian team led by former Palestinian premier Ahmed Qureia were serious - but said she could not guarantee success by the end of the year, as hoped for by Bush. "Every few days we have meetings for a few hours. We need this period of time not just to negotiate. We need (to form) an effective (Palestinian) government... not only in the West Bank but in the Gaza Strip." Previous peace efforts ultimately failed to bridge the gaps on key issues. The Palestinians have never formally abandoned the demand for the right of refugees and their descendants - numbering millions, potentially - to return to what is now Israel. It is highly unlikely Israel would agree to any version of this. And while Israelis appear resigned to losing the West Bank, sharing Jerusalem - a probable deal-breaker for Palestinians - is another matter. Anyone expecting concrete details of progress on such issues - or a solid undertaking to stick to the end-of-year quasi-deadline - left disappointed. "I don't like the timetable," Livni added. "It can lead to frustration and violence in the end. We need some time to do it the right way. To enter a closed room and wait until white smoke gets out with all the cameras watching - this is going to be a huge mistake." Barak shifted in his seat. Livni appeared to be describing his own effort to reach a peace deal with Yasser Arafat when they were hosted by Bill Clinton in Camp David in May 2000. The collapse of that summit - with the world watching - was followed months later by the Palestinian uprising, which buried the peace efforts for years and killed more than 1,000 Israelis and 4,000 Palestinians. Ever the positive thinker, Blair drew succor from the encounter. "I believe there are real grounds for optimism even though there are real challenges," he said, adding: "Having been British prime minister for 10 years, with the British media, I have to be an optimist." Related articles: Arab League chief: Israeli policy is destroying peace process PM completely freezes new construction in W. Bank settlements Yossi Beilin / Prime Minister Livni, Foreign Minister Olmert Rami Livni / Rebranding the left Bookmark to del.icio.us   Dear Mr. Olmert An American yeshiva student asks Olmert to heed secular Israelis on J'lem's fate. Work stoppage Olmert totally freezes new building in all West Bank settlements.   1.   Fayyad,you slimy collaborator,you hypocrite,you`ve done 03:30  |  lakshmi 25/01/08   2.   We really mean it. (right) 04:22  |  akiva (zionist) 25/01/08   3.   What Peace and what prospects? They are all delusional! 04:45  |  Genuine Tosefta 25/01/08   4.   Talking is good but where is the peace? 05:41  |  Dan Chazan 25/01/08   5.   Yes Lakshmi war is so much better then peace 07:23  |  Dan Chazan 25/01/08   6.   Smooth Fayad overwhelms Israeli hillbillies 08:15  |  Sam 25/01/08   7.   Murder Inc. 08:19  |  Genocide Toaster 25/01/08   8.   It is Bullshit no peace 12:30  |  El-Birawi 25/01/08   9.   5 Dan Chazan you are putting words in my mouth! I have never said 13:18  |  lakshmi 25/01/08   10.   another cease fire 13:37  |  Dov Ber 25/01/08   11.   Another "peace of the brave "? isn`t it? 15:49  |  Sal 25/01/08   12.   Only one way for peace 15:52  |  Bob_boston 25/01/08   13.   Lakshimi: There are no crimes. 18:33  |  Dan Chazan 25/01/08   14.   To Lakshimi (CONTINUED) 18:39  |  Dan Chazan 25/01/08

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