ISRAEL - Dec 6 - Israel Predicts No Switch Of US Policy.

Israel decides not to issue an immediate comment but weigh its response to the ISG report, which called for a revived commitment to Arab-Israeli peace on all fronts and talks between Syria and Israel. Officials were confident that Washington would neither ease its policy against Iran's alleged nuclear weapons programme nor exert undue pressure over the Palestinian issue as part of efforts to reverse the crisis in Iraq. The report said renewed commitment to peace "must include direct talks with, by and between Israel, Lebanon, Palestinians [those who accept Israel's right to exist], and Syria". As part of a comprehensive peace accord, it said Israel must return the Golan Heights, captured in 1967, to Syria. However, few Israeli officials expected to see sustained US engagement, such as that displayed by the Clinton or first Bush administrations, despite the latest recommendations. Israel has common cause with Washington and Sunni regional states that fear rising Iranian hegemony. This could translate into concessions towards the Palestinians but fall short of a comprehensive solution while talks with Syria remain distant, say analysts. Some Israeli officials expressed concern after Robert Gates, incoming US defence secretary, said that Washington could not promise that Iran would not attack Israel with nuclear weapons. However, Israeli vice-premier Shimon Peres, said: What we have here is not a change in policy but a new era, which will see numerous fronts with new players and organisations". Israel has faced increased calls for renewed peacemaking in recent weeks, from King Abdullah of Jordan to Tony Blair of Britain. Observers say a flurry of regional diplomatic activity, and a Gaza ceasefire, point to Washington's hand in attempts to ease at least the situation on the ground in the occupied territories. But with the Israeli and Palestinian leaderships both apparently directionless, few analysts see room for a serious effort to resolve the core issues of the conflict. Palestinian talks on a unity government to replace the Hamas-led administration have floundered. Resumption of western aid and contacts still hinges on Hamas meeting conditions, such as renouncing violence and recognition of Israel. These were set by the international community after the Islamist group won elections in January and leave little room for manoeuvre. Israel and the US have urged Palestinian president Mahmoud Abbas, to consider dismissing the cabinet and calling for a referendum on a new government. But many fear this could trigger a civil war. One Palestinian official said Abbas had not found a strategy to take advantage of the Bush administration's acknowledgment of links between the Palestinian issue and other regional crises, such as Iran, Lebanon and Iraq Meanwhile, Israeli PM Ehud Olmert, dropped earlier plans for unilateral West Bank withdrawals in the wake of the summer war against Lebanon's Hizbullah movement.