The future of a Palestinian entity: Both Israel and the Palestinians
agree that they should establish a state. They argue over the level of that
state's sovereignty, particularly concerning military affairs. The United
States expects this problem to be resolved in a staged agreement.
The future of Jewish settlements: Israel insists that at least tens of
thousands of Israelis remain in the West Bank in two tiny enclaves near the
1967 border. The Palestinians want the settlements to be uprooted. Again,
the United States will seek to propose a gradual process that will review
the presence of Jewish settlements in the future.
Jerusalem: Israel insists on formal control of the city. The
Palestinians want at least eastern Jerusalem to be their capital. Redrawing
the boundaries of the city appears to be the most likely compromise.
Palestinian refugees: The Palestinians want refugees to be given the
right to return to their homes in what is now Israel or receive compensation
from Israel. Israel has refused to formally recognize this right. The United
States is working on a formula that will taken both interests into account.
The end of the Israeli-Palestinian conflict: Neither side wants to leave
the summit without a complete settlement but they are willing to delay
issues until a later date. The difference is that Israel wants a Palestinian
commitment that the conflict with Israel is over and it will never launch
violence against the Jewish state. Again, a formula that relies on creative
writing could be the answer -- for now.
Opposition to Arafat and Barak: Arafat's opposition will attack any
agreement and aides to the Palestinian leader have pledged to hold a
referendum. But privately Arafat has told his critics that whatever happens,
future generations of Palestinians will decide whether they want to continue
the conflict with Israel. Barak's opposition is regarded as much weaker. His
biggest problem is that his coalition is crumbling, with even Foreign
Minister David Levy refusing to attend the summit because of objection to
the agenda. Barak is hoping that the United States can convince the Arabs
that any settlement of the Israeli-Palestinian conflict will lead to full
diplomatic and trade relations with virtually the entire Arab world.