Middle East talks edge closer to deal

PRESIDENT BILL Clinton and King Hussein of Jordan both returned to the Middle East peace talks yesterday, as hopes rose that a settlement was close.

The essence of a deal would be to match Israeli withdrawals from the parts of the West Bank which it occupies, with a comprehensive security plan implemented by Palestinians under the supervision of the US Central Intelligence Agency. But the deal is also expected to set the basis for further Israeli withdrawals, and for talks that may lead to the establishment of a Palestinian state.

Proposals contained in a 10-page document were intended to end an 18- month log jam in the Middle East peace process, and kick off talks on a new deal that would establish the permanent status of Palestine, the return of refugees, water rights and the status of Jerusalem. The US has been frequently criticised for providing insufficient momentum to the talks, but Mr Clinton has spent more than 60 hours at the talks in Maryland.

The last phase of talks was a "very serious and intensive effort to try to make the key decision necessary for us to put the peace process back on track," said Jamie Rubin, a US State Department spokesman. But what had seemed the main sticking point - a security deal between the Palestinians and israelis - appeared to have been resolved. "The focus of the efforts today is not on security," Mr Rubin said.

The optimism followed a day of turmoil as Israel threatened to throw the talks into chaos by withdrawing. The Israeli Prime, Minister Benjamin Netanyahu, had his staff packing bags and preparing to leave, but late- night discussions with US officials headed off the threat of unilateral departure.

Mr Netanyahu complained that the agreement which was being offered did not sufficiently safeguard Israeli security. His threat angered and frustrated US officials, who believed that the security plan - drawn up by the CIA, and discussed extensively since it was first prepared last year and in the seven days of talks in Maryland - already covered the issues which the Israelis were complaining about.

Yesterday US officials said that the central issue - land for security - was largely resolved, and that a new airport for Gaza was also almost finalised.