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http://www3.haaretz.co.il/eng/scripts/article.asp?mador=14&datee=5/17/01&id=119580

Peres vows no more land expropriation

By Aluf Benn Ha'aretz Diplomatic Correspondent

.....

Israel rejects the settlement freeze portion of the report, as well as criticism of IDF force used against Palestinian demonstrations. Powell has said the report is an "excellent" basis for a new diplomatic initiative in the regin.

Sources in Jerusalem suggest the U.S. will not adopt the report in its entirety, and will seek a solution to what Israel regards as the most problematic issue - the call for a freeze on settlements, including any "natural growth" development.

Meanwhile, the Palestinians have formally accepted the Mitchell Report in its entirety - and insist that it be implemented as a package deal, without any changes.

In the discussions Powell held previous to yesterday's session of the NSC, two possible solutions were raised. The first was to adopt Foreign Minister Shimon Peres' formula, which says that NO NEW LAND WILL BE EXPROPRIATED for settlement growth, and natural growth would be measured by demography, meaning births and marriages, rather than geography, meaning physical expansion.

The second option raised in Powell's discussions was a total settlement freeze for a set period of time, possibly three or six months, as a confidence building measure by Israel. But a source close to the U.S. administration said Washington would more likely choose the "Peres formula" because it is unlikely Prime Minister Ariel Sharon would accept any freeze and Washington is not interested in a confrontation with Sharon at this stage.

..... [Full article at link]


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