Israel-Palestine: A Secret Deal to Start Direct Talks?

On Friday, talking to Israeli Defense Minister Ehud Barak, United Nations Secretary-General Ban Ki-moon asked for an extension of the settlement freeze and its application in east Jerusalem. Barak responded with a statement that went far beyond the request:

We are hoping to to start direct negotiations with the Palestinians soon, in order to move forward with an agreement which will be based on two nations for two peoples. The negotiations will not be simple, and courageous decisions will be required on our part and the Palestinians. I hope everyone understands that both sides will need to make difficult decisions to establish historic peace in the region. We will need the help of the UN to go forward with the negotiations.

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On Saturday, Palestinian Authority chief negotiator Saeb Erekat denied reports in the Arab media  that the Obama aministration had threatened sanctions against the PA --- perhaps even the severing of ties --- if PA leader Mahmoud Abbas did not agree to enter direct talks with Israel. Then he talked about a peace proposal, even "more generous" than the one offered to former Israeli Prime Minister Ehud Olmert. Erekat said:

I presented Senator George Mitchell with a series of official document. We gave him maps and papers that clearly state our positions on all the final-status issues: borders, Jerusalem, refugees, water and security. Thus far we have not received any answer from the Israeli side.

(Note: Erekat has stated that the PA offered Olmert a swap that would let Israel annex 1.9% of the West Bank in exchange for return to Palestine of Israeli settlements covering 1% of the territory.)

On Sunday, Prime Minister Benjamin Netanyahu said that he had not received any Palestinian peace programme but he announced that direct negotiations with the Palestinians will begin by the middle of August.

What does all this mean? How can the Israeli Prime Minister be so confident to announce the advent of direct talks while rejecting any proposal from the Palestinians? Has Netanyahu made a concession both on the status of East Jerusalem, including the Temple Mount, in response to a Palestinian concession on the percentage of West Bank land to be swapped?

Indeed, has Netanyahu given consent to gestures such as the transfer of some towns to the West Bank, transfer of some areas to the PA authority, the release of Palestinian prisoners, and the extension of the settlement freeze in the West Bank along with a freeze in East Jerusalem?