A peace offering.

JERUSALEM -- For most of this year, prospects for peace between Israelis and Palestinians had seemed bleak. But at the end of November, there were signs of progress. Both sides agreed to a cease-fire in the Palestinian territory of Gaza. And in a speech on November 27, Israel's prime minister, Ehud Olmert, offered proposals that could lead to peace talks.

Olmert proposed releasing Palestinian prisoners from Israeli prisons in exchange for securing the freedom of a captured Israeli soldier. Olmert also said Israel would release Palestinian funds it is holding and would reduce the number of checkpoints that limit the Palestinian people's mobility. There's just one catch: The Palestinian government must reject violence and recognize Israel as a nation.

Last January, the extremist Islamic group Hamas won control of the Palestinian parliament. Hamas rejects Israel's right to exist and supports terrorist attacks against Israel. Olmert proposes holding peace talks with the president of the Palestinian National Authority, Mahmoud Abbas, who is unaffiliated with Hamas. "I extend my hand in peace to our Palestinian neighbors," Olmert said, "hoping that it will not be rejected."