Olmert's government was too weak and could not resolve the issues of Jerusalem and the borders of a future Palestinian state, even if the Palestinians agree to accept the right of return for refugees to the West Bank and Gaza only.
says Al-Quds (source)
but they'll do business with him anyway:
head of the Palestinian negotiating team, Ahmed Qureia (also known as Abu Allah), told Al-Ayam that there was no room for confusion regarding the key issues of an Israeli-Palestinian peace agreement.
"It is vital that in the next few days we reach agreements on these issues, which include Jerusalem, refugees, borders, water, settlements and prisoners," he told the Bahrain daily.