Israel-Palestine: Settlements Deadline Expires, Netanyahu Wins, Abbas Plays for Time

All day Sunday, as Israel's moratorium on expansion of West Bank settlements neared expiration, we waited for breaking news from Washington. Nothing. Well, nothing, except for platitudes: President Obama's advisor David Axelrod told ABC News: "We are going to urge and urge, and push throughout this day to get some kind of resolution. These talks themselves are absolutely crucial --- we're at a critical juncture in that region."

The Israeli government did not extend the freeze. It did not offer even a conditional freeze, allowing several hundred new homes beyond those under construction 10 months ago. On Sunday, as Defense Minister Ehud Barak told the BBC that there was a 50:50 chance in finding a solution over settlements, Prime Minister Benjamin Netanyahu warned both settlers and his Cabinet to keep a low profile. 

West Jerusalem has not ruled out out deputy premier Dan Meridor's proposal, favouring construction in large settlements and barring any new construction in isolated ones. Settlers currently have plans for around 2,000 new homes across the West Bank, taking out licenses before the moratorium's deadline. Of these, around 600 have up-to-date paperwork and are expected to be completed in the coming months. 

What about the Palestinian side? Talking to the London-based Arabic language daily Al Hayat on Sunday, Palestinian Authority leader Mahmoud Abbas said that Palestinians will not resort to violence even if the peace talks come to an end. He added, "We tried the intifada (uprising), and it caused us a lot of damage....We will not apply to violence."

But will Abbas remain at the negotiating table?. He said in New York last Wednesday, "I can't say I will leave the negotiations, but it will be very difficult to continue if Netanyahu will announce that he will start building." 

It appears that Abbas will put the ball in the Arab League's court, as it prepares to meet on 4 October, and look for a compromise offer from Israelis during that time, setting down the marker that he would immediately withdraw from peace talks if construction resumed.

It is Netanyahu, however, who has "won" for the moment, as Israel has resisted pressure --- even from the US --- for a concession on settlements. So, just after the expiry of the moratorium, Netanyahu played the magnanimous leader:

Israel is ready to pursue continuous contacts in the coming days to find a way to continue the peace talks.

I call on President Abbas to continue the good and honest talks that we have only just started, in order to reach a historic peace agreement between our two peoples.

I say to President Abbas: For the sake of our two peoples, let's focus on what really matters. Let's continue expedited and serious peace talks to reach a historic framework peace agreement within a year.