US and Israel close to settlements deal

The United States and Israel are closing in on a deal that would freeze construction at Jewish settlements on the West Bank and Gaza.

The three key points, according to diplomatic sources, are: no new settlements; no construction beyond the confines of existing ones; and no taking of Palestinian-owned land for settlements.

Such an agreement by Prime Minister Ariel Sharon’s Government would go a long way towards meeting a key Palestinian demand.

But the agreement has not been concluded, said an Israeli official. Also, some Israeli actions in the territories seen by the Palestinians as rightfully theirs, are not covered.

These include the building of new roads for settlers, which stirs opposition from the Palestinian Authority.

A construction freeze was a key recommendation of the fact-finding Mitchell Commission, headed by former Senate Democratic Leader George Mitchell.

Its recommendations, including the freeze, were endorsed in mid-May by Secretary of State Colin Powell.