Thursday, October 22, 1998 Published at 04:36 GMT 05:36 UK
World: Middle East
Summit survives Israeli ultimatum
Palestinians demonstrate in support of those held in Israeli jails
The week-long summit had come close to breaking up in disarray when Israeli negotiators packed their bags and made preparations to quit.
But BBC Washington Correspondent Stephen Sackur says frantic last-minute manoeuvring by US Secretary of State Madeleine Albright and CIA Director George Tenet before Israel's deadline expired seemed to do enough to convince the Israelis to stay on.
President Clinton says he is returning to the talks on Thursday.
A US draft document has now been presented to both sides. At the heart of the US proposal is a phased Israeli withdrawal from 13% of the West Bank in exchange for a package of Palestinian security measures.
The Israeli delegation has been demanding concessions from the Palestinians on two issues
"This conference is a disaster because the Israelis are acting as irresponsible kids who are playing with fire," he told reporters.
It is unclear whether American draft proposals on key security issues were modified as a result of the Israeli threat to leave.
Earlier the American draft agreement had envisaged the involvement of the American CIA in Palestinian efforts to deal with attacks by Arab militants against Israeli targets.
Crucial to the deal was an Israeli decision to drop demands that the Palestinians hand over terrorist suspects for trial.
The CIA would monitor the implementation of the agreement.
Still under discussion were questions of 'linkage' - how an Israeli military withdrawal from 13 % of the West Bank will be tied to new Palestinian security measures.
West Bank protests and arrests
Right-wing political groups in Israel have threatened to bring down Mr Netanyahu's government if he makes any concessions.
Palestinian security forces have detained at least 15 suspected militants, following Monday's grenade attack in the Israeli town of Beersheba which wounded more than 60 people.
The detentions came shortly after the armed Islamic militant group Hamas said it was behind the attack, which had cast a cloud over the Maryland talks.