From the story:-
...on a richly choreographed day of diplomacy, filled with solemn promises to tackle the tough issues dividing them, the Israeli and Palestinian leaders did not confront the one issue that could sink these talks in three weeks: whether Prime Minister Benjamin Netanyahu will extend a moratorium on the construction of Jewish settlements in the West Bank.
The Palestinian Authority president, Mahmoud Abbas, has threatened to walk out of the negotiations if Israel does not extend the moratorium beyond September. But officials said the two leaders barely broached the topic during three hours of talks, which covered the gamut of issues that have divided Israel and the Palestinians for decades.
Instead, Mr. Netanyahu and Mr. Abbas focused on mechanics, agreeing to aim for a “framework agreement” that resolves the core issues in carving out a Palestinian state from the Israeli-occupied territory on the West Bank. The fine points of a treaty would be worked out after that.
...Analysts said they were encouraged by the goal of a “framework agreement,” which could be a practical vehicle for both sides to resolve vexing “final status” issues: borders, security, the political status of Jerusalem, settlements and the rights of Palestinian refugees.
"Analysts"?
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“They’ve set for themselves an achievable objective in a one-year time frame,” said Martin S. Indyk, a former American ambassador to Israel and Middle East peace negotiator. “A comprehensive agreement would have been unrealistic with that kind of timetable.”
Analyst? He's a player.
And some direct update?
Here:-
...“The climate, and atmosphere, was positive and serious and down to business,” said Nabil Shaath, foreign relations commissioner of Mr. Abbas’s Fatah Party, who is negotiating for the Palestinians.
“But the cloud is still there,” he added. “The Israelis gave absolutely no hopeful signs that they will continue the moratorium. And in our point of view, that is the litmus test for the Israelis.”
On Wednesday, officials said, President Obama spoke bluntly to Mr. Netanyahu and Mr. Abbas at the White House, urging them not to allow the impasse to scotch the talks. But Mr. Netanyahu has not offered any hint of a compromise, and analysts say he is hemmed in by his right-leaning coalition, which could splinter if he simply extended the moratorium.
The more likely outcome, officials said, is a compromise in which Israel would agree to limit settlements, but exempt West Bank areas that are certain to remain part of Israel under a peace deal. It could also offer a limited extension, based on agreeing on the borders of a Palestinian state.
Israeli officials declined to discuss the issue of settlements but said the overall tenor of the talks was “good and constructive.” Citing the killings of four Israeli settlers in the West Bank this week, Mr. Netanyahu said security would have to be a critical theme of the talks. He said that the rise of Iran, and its support of militant groups, had radically altered the landscape for peace talks...
I am waiting to hear any indication at all that this phrase, "West Bank areas that are certain to remain part of Israel under a peace deal", is acceptable to Abbas.
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UPDATE
A senior Palestinian source told Haaretz that the American administration renewed its pressure on Palestinian President Mahmoud Abbas to stay in direct negotiations with Israel, even if some construction in the settlements resumes after the end of the current moratorium. The source warned that Abbas would not be able to agree to a renewal of construction and will be forced to withdraw from the talks.
According to the source, a Palestinian okay to the renewal of construction just as direct talks are resumed is politically impossible...
Abbas would not be able to give up Palestinian sovereignty in East Jerusalem and especially the Temple Mount, but large Jewish neighborhoods would be retained by Israel. If this much is achieved, Abbas will be able to agree that the refugee issue will be resolved primarily within the borders of the new Palestinian state, with only a few tens of thousands receiving Israeli citizenship as a humanitarian gesture.
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