Jerusalem - Direct peace talks between Israel and the Palestinians over Israeli-occupied territories on the West Bank appeared deadlocked yesterday, with the two sides no nearer agreement on a US initiative to break more than 16 months of paralysis.
"What was presented to us yesterday was very far from the American proposal and the signed agreements between us," Palestinian President Mr Yasser Arafat told reporters in Ramallah.
Israeli government sources say it is offering to cede 10 percent of the occupied areas to Palestinian self-rule with another three per cent subject to special restrictions.