Fayyad unveils plan for Palestinian state in two years

Palestinian prime minister Salam Fayyad on Tuesday unveiled his government's plans to create a de facto state in two years.

Rival Palestinian factions fail to agree on unity govt

Rival Palestinian factions have so far failed to overcome obstacles in reconciliation talks which they hope will lead to a unified governing body.

Rice presses Israel on roadblocks, settlements

United States Secretary of State Condoleezza Rice on Sunday pressed Israel to ease travel restrictions on Palestinians and called Jewish settlements in the occupied West Bank "particularly problematic". But she said Washington believed an Israeli-Palestinian peace deal was still possible before US President George Bush leaves office in January.

Israeli army breaks up protest at wildcat settlement

Israeli soldiers on Thursday dispersed about 50 Palestinian and Israeli demonstrators who briefly took control of a wildcat settlement near Ramallah to protest against the expansion of Jewish settlements in the West Bank. The protesters had raised a Palestinian flag in place of an Israeli one.

Bush sees Middle East peace treaty in a year

United States President George Bush on Thursday predicted the signing of a Middle East peace treaty in a year and called for an end to Israel's four-decade occupation of Palestinian land. Giving an assessment of his talks with Israeli and Palestinian leaders over the past two days, he said it was time for both to make "difficult choices".

Israel frees more than 400 Palestinian prisoners

More than 400 Palestinian prisoners came home to a heroes' welcome on Monday after the latest Israeli release aimed at boosting President Mahmoud Abbas during the revived peace process. Thousands of singing and dancing well-wishers waving Palestinian flags gathered to greet the buses filled with the smiling ex-detainees.

Rice promises 'substantive' Middle East conference

United States Secretary of State Condoleezza Rice vowed on Monday that a US-sponsored Israeli-Palestinian conference would be serious and substantive, confirming it will take place in Annapolis, Maryland. "We frankly have better things to do than invite people to Annapolis for a photo op," she said.

Blair sees possibilities in Middle East mission

Tony Blair said on Tuesday there was a new "moment of opportunity" in the Middle East but cautioned in his first visit as an international envoy against expecting any peace breakthrough soon. Blair, in his first public remarks since starting his mission on Monday, said he came "to listen and to learn and to reflect" in talks with Israeli and Palestinian leaders.

Palestinians pay first full salaries in over a year

Thousands of Palestinian civil servants began receiving their first full salaries in 17 months on Wednesday after Israel released tens of millions of dollars of withheld tax receipts. Relieved Palestinians queued en masse outside banks, checking their names on a list or drawing cash from ATM machines.

New Palestinian Cabinet may end aid boycott

Palestinian President Mahmoud Abbas was set to swear in a new Cabinet in the West Bank on Sunday, further sealing the divide sparked by the bloody seizure of the Gaza Strip by his Islamist rivals. Palestinian officials hope the creation of an emergency Cabinet without Hamas will lead to the lifting of a crippling Western aid boycott.

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