Israel and the Palestinians ended five days of talks in Egypt without a peace deal today but said they were closer than ever to agreement.
Negotiators issued a joint statement after the talks in the Egyptian Red Sea resort of Taba saying they hoped to bridge the remaining gaps at negotiations that would resume after Israel's prime ministerial election on February 6.
Although no agreement was reached, Palestinian officials said Palestinian President Mr Yasser Arafat would meet Israeli Prime Minister Mr Ehud Barak in Sweden next week to discuss peace. Israeli sources said Mr Barak was still deciding whether to go.
"It proved impossible to reach understandings on all issues despite the substantial progress that was achieved in each of the issues discussed," the written joint statement said.
"The sides declare that they have never been closer to reaching an agreement. It is thus our shared belief that the remaining gaps could be bridged with the resumption of negotiations following the Israeli election."
The negotiators discussed four main issues - the fate of Palestinian refugees, borders, security and the future of Jerusalem. The four were the main obstacles to a deal after an inconclusive US-brokered summit last July.
They persevered with the talks despite continued violence in the West Bank and Gaza Strip, which took the death toll in a four-month Palestinian uprising against Israeli occupation to at least 312 Palestinians, 48 Israelis and 13 Israeli Arabs.
The two sides said trust had been rebuilt at the talks. But that may not be enough for Mr Barak, whom opinion polls suggest will be beaten soundly on February 6 by right-winger Mr Ariel Sharon, who takes a tougher line against the Palestinians.
A meeting with Mr Arafat next week in Sweden could raise Mr Bark's hopes for a last-minute breakthrough in the peace process or an end to the worst Israeli-Palestinian clashes in years.
"The two leaders will meet Tuesday or Wednesday in Stockholm under the auspices of the European Union and the United Nations. They will give a last-minute chance to agree on final status issues before the Israeli elections," a Palestinian official said.
Reuters