Mid-East sides keep talking

More clashes: A peace deal still seems far away

Israeli and Palestinian negotiators failed to break the peace deadlock at late-night talks in Gaza, but agreed to hold further meetings.

The delegations were led by Palestinian leader Yasser Arafat and former Israeli Prime Minister Shimon Peres - the highest-level contact between the two sides since November.

There were no results. The differences and obstacles are still there

Palestinian negotiator Saeb Erekat

A statement from Israeli Prime Minister Ehud Barak's office said discussions had centred on reducing violence and reaching a "positive understanding on diplomatic contacts".

Wide differences remain between the negotiating teams and the prospects for a peace deal before US President Bill Clinton leaves office and Israelis go to the polls are said to be slender.

Following the latest talks, which lasted for nearly three hours, chief Palestinian negotiator Saeb Erekat said: "There were no results. The differences and obstacles are still there."

But he said more sessions were planned over the coming days.

US proposals

Two issues were on the table at the talks - ending months of violence, and what to do about American proposals for a peace deal.

Peres: Good relationship with the Palestinian leader

Some progress was made on the first matter during talks last week, but serious violence on Friday was a setback.

The Americans have outlined suggestions for solving the key issues, including the fate of Jerusalem and the nature of a future Palestinian state.

Mr Clinton's proposals would give the Palestinians about 95% of the West Bank, all of the Gaza Strip and some Palestinian areas in East Jerusalem.

Two executed

But the Palestinians and the Israelis both have serious reservations about the proposals and officials on both sides have expressed pessimism that a deal can be reached before it is too late.

Arafat met Peres in Gaza City

It is even proving difficult to reach agreement on a form of words which could act as a framework for future talks.

Mr Arafat appeared to emphasise his hardline credentials on Saturday when two Palestinians were executed for collaborating with Israel.

The executions were the first ever carried out by the Palestinian Authority for collaboration with Israel, but Mr Arafat refused to commute the sentences to life imprisonment.

Mr Peres, who currently holds the post of regional co-operation minister in Ehud Barak's cabinet, is viewed as the government member with the closest rapport with Mr Arafat.

And the return to talks was accompanied by Israel's lifting of blockades on two major Palestinian cities - Bethlehem and Jericho - and a decrease in violence.

Differences remain

But major differences remain over the fate of Palestinian refugees and the BBC correspondent in Jerusalem, Paul Wood, says the plan to give the Palestinians a string of disconnected pieces of land falls short of their central demand for a viable state.

Reported American proposals

Israel to concede sovereignty over much of East Jerusalem and the Al-Aqsa mosque

Palestinians give up the right of return for Palestinian refugees

Palestinian state on 95% of the West Bank and 100% of the Gaza Strip

Both Israel and the US would like to see a joint Israeli-Palestinian declaration of principles that would lay the groundwork for a final peace deal.

But the Palestinian side wants to go straight to final status talks.

However, the fact that negotiations have been taking place at all is seen by many as a positive sign.

More than 360 people, the vast majority of them Palestinians, have been killed since a Palestinian uprising began in late September.