Peace talks are expected to resume today after Palestine defers statehood declaration

The PEACE talks between the Palestinians and Israelis are expected to resume today following a weekend decision by the Palestinian Central Council to delay this week's planned declaration of an independent Palestinian state.

Although Palestinian sources say full-scale negotiations will not be resumed by high-level teams, they expect contacts between officials as early as today. On the Palestinian side these contacts will be conducted by Mr Saeb Erekat, a veteran negotiator, and Mr Muhammad Dahlan, the security chief in Gaza.

Reports say they will meet Mr Gilad Sher, a confidant of the Israeli Prime Minister, Mr Ehud Barak, and Mr Oded Eran of the Israeli Foreign Ministry.

According to the Palestinian Planning Minister, Mr Nabil Shaath, the talks will aim to secure progress on issues other than the Temple Mount which, he said, had "kept the other issues hostage".

"We hope that we can conclude a final settlement this year," Mr Erekat observed, and he hoped this would allow the Palestinians to declare their state "by agreement".

While a state by agreement is the goal of the entire Palestinian political establishment, few Palestinians now believe the state can be achieved through the current negotiating process.

Mr Basil Aql, a member of the Palestinian Central Council whose views are close to those of the Palestinian President, Mr Yasser Arafat, said the Palestinian state could not be proclaimed unless the "basic issues" of borders, Jerusalem and refugees were solved.

"We have part of the land, we have part of the people but we don't have sovereignty," he said. "What's the point of declaring a state?"

He warned that Jerusalem could become "another Kashmir" if Palestinian interests in the Holy City were ignored.

The head of the political committee in the Palestinian Legislative Council, Mr Ziad Abu Amr, accepts the temporary deferment of the declaration of a state but insists that if contacts go on through November and December without progress, the central council, which is due to reconvene by November 15th, should decide to go ahead with a unilateral proclamation.

"We will have to take the risk and declare a state within the 1967 borders with Jerusalem as its capital, even if this goal is unattainable at the time. The declaration would transform the situation: the areas we control would be Palestine and what Israel holds would become `occupied territory'," Mr Abu Amr said. "Negotiations with Israel could continue."

Israel's Acting Foreign Minister, Mr Shlomo Ben Ami, said yesterday that he did not see much scope for striking a deal with the Palestinians over the next month or so, although contacts were continuing. Asked about the potential for progress in the next five weeks, he said: "Realistically I don't see that there is much or an excessive room for hope."