Netanyahu peace move dismissed

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Palestinians have dismissed any attempt by Israel's Prime Minister Benjamin Netanyahu to take interim steps towards peace now that the US-sponsored negotiations are frozen.

An Israeli official said Mr Netanyahu was crafting a proposal for a "phased approach" to break the deadlock. The Israeli Defence Minister, Ehud Barak, was quoted in the The Wall Street Journal as saying Mr Netanyahu may propose a Palestinian state with temporary borders. The Palestinian leader Mahmoud Abbas has long rejected the idea.