OLMERT TO GIVE FATAH/ABBAS A PALESTINIAN STATE

PM confirms intention to negotiate with Abbas on formation of Palestinian state (Haaretz)
Prime Minister Ehud Olmert confirmed Wednesday that he intends to engage in negotiations with Palestinian Authority Chairman Mahmoud Abbas on the formation of a Palestinian state.

Olmert was responding to a Haaretz report, according to which he offered to hold negotiations toward an “Agreement of Principles” for the establishment of a Palestinian state comprised of the Gaza Strip and most of the West Bank.

In a press conference with President Shimon Peres, Olmert stressed that no timetable has been set for the negotiations.

The prime minister added that there are “other quiet understandings” with the PA, in addition to the confidence-building measures Israel has taken. These include the release of prisoners affiliated with Abbas’ Fatah movement, amnesty for wanted Fatah men and the transfer of withheld tax funds.