Three-way Mideast summit called off

Israeli Prime Minister Ehud Barak reportedly cancelled after Palestinian officials indicated a proposal for a settlement by U.S. President Bill Clinton was not acceptable to them. Barak had broadly welcomed the U.S. plan.

Egyptian state television reported the trilateral summit has been postponed to an undetermined date, but that Palestinian leader Yassir Arafat would meet the host, Egyptian President Hosni Mubarak, as scheduled.

CNN television reported that Mubarak may meet separately with both Arafat and Barak on Thursday. A White House spokesman said late Wednesday that Arafat, in a letter to Clinton, had not rejected the proposal, but sought clarification on various points.

The U.S. administration maintained hope a three-way meeting in the Egyptian beach resort of Sharm el-Sheikh would take place.

Under Clinton's proposal - aimed at ending a 50-year-old conflict and recent bloodshed that has claimed more than 340 lives - both sides would have to make major concessions that would put both Barak and Arafat under domestic pressure.

The Israelis would have to give up sovereignty over several Arab neighbourhoods in Jerusalem and the Temple Mount, a site holy to both Jews and Moslems.

The Palestinians would get a homeland made up of Gaza and most of the West Bank but would have to largely abandon calls for more than 3.5 million refugees to be repatriated to Israel.

Speaking on national television Wednesday evening, the Israeli leader had first cast doubt on the planned three-way meeting after Palestinian officials made contradictory statements on their willingness to accept the U.S. compromise plan.

Cancellation of the summit would be a serious set-back for Clinton, who leaves office on January 20. A key mediator in the conflict, Clinton said earlier Wednesday that Israel and the Palestinians were "closer than they have ever been before" to a peace agreement and should "seize the opportunity" to end decades of conflict.

The White House spokesman later said, "There are still a number of hours to go before the summit, and things can change quickly in the (Mideast) region". He added: "What we've been saying all along is that this would be hard, it's a difficult process."

Clinton had on Wednesday telephoned Mubarak and Russian President Vladimir Putin as well as leaders in Saudi Arabia and Jordan to discuss the process toward Mideast peace.

(klei/dpa)