A cosy two-and-a-half hour dinner at Number 10 between Tony Blair and Ariel Sharon has warmed relations between Britain and Israel despite headlines which concentrated on Britain's refusal to boycott Yasser Arafat.
British sources indicated that for practical purposes they will deal with the Palestinian Prime Minister Mahmoud Abbas (Abu Mazen) but that for symbolic purposes Yasser Arafat must be regarded as the Palestinian figurehead.
Relations between Britain and Israel have been touchy
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Mr Sharon appears to understand that position, though publicly he has pressed for more.
The wider picture is that Tony Blair is trying to encourage Ariel Sharon to join a long list of Israeli military leaders who have accepted that peace would have to be made with the Palestinians.
Mr Sharon meanwhile is trying to enlist British support and understanding for the tough security line he is taking.
Meeting in the middle
They met somewhere in the middle.
Mr Blair wants the Israeli government to do more to help Mahmoud Abbas and his new government.
Mr Sharon wants the British to back his demand for the disarming of groups like Hamas and Islamic Jihad.
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Mr Blair does not regard Mr Sharon as an impossible hardliner. Mr Sharon does not regard Mr Blair as "unbalanced"
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Neither got full acceptance of all their demands but such issues will not be settled by a meeting in London.
What was going on here was that Mr Blair does not regard Mr Sharon as an impossible hardliner and hopes that he can be brought to the negotiating table.
Mr Sharon does not regard Mr Blair as "unbalanced", a term he uses for other EU leaders and hopes that his influence will be felt in EU councils.
They found one issue in common - Iraq (apart, that is, from their own rows with the BBC).
On Iraq, the British leader heard none of the criticisms of his assessments or his actions.
A senior Israeli source, whose information BBC News Online has gained access to despite a semi-boycott of the BBC by the Israelis, expressed satisfaction with the talks.
Disagreement on some issues
Not that there was agreement on all issues.
The source said, in answer to British concerns about the security fence going up round the West Bank, that it was not a political fence.
Although it does not exactly follow the "green line" which delineates the 1967 border, he said that it was not intended to set the final borders which would be decided in final stage talks.
The source also said that Mr Sharon explained Israel's position on the release of Palestinian prisoners by saying that nobody "with blood on their hands" would be freed.
There is some suggestion that one sensitive issue, the blocking of export licenses by Britain for some military equipment, might be eased at some stage.
Currently the Israelis are pressing for the sale of new ejector seats for their old Phantom jet fighters.
If that sale is approved (and it is being reviewed) it would be a sign that these talks have indeed improved relations and not just the public atmosphere.