Olmert Warns On Israelis Survival.

In an interview published on Nov. 29 by Ha'aretz, Olmert gave a blunt warning that failure to reach a comprehensive peace agreement with the Palestinians based on a two-state solution will lead to a "South African-style struggle" and may spell the end of the Jewish state. He said: "The day will come when the two-state solution collapses, and we face a South African-style struggle for equal voting rights and, as soon as that happens, the state of Israel is finished".

Olmert's remarks were unusually provocative for an Israeli PM. Officials and citizens normally reject comparison between Israel's treatment of Palestinians and the racist policies of the South African apartheid regime. But Olmert is battling to win the backing both of the Israeli public and of his own coalition government for the new round of peace negotiations with the PNA. His aides say part of that strategy means spelling out the dire consequences for Israel which might arise from continued occupation of Palestinian territories.

Olmert's fear - and that of many Israelis - is that Israel would eventually come under intense pressure to grant equal political rights to Palestinians living under occupation, threatening its Jewish majority. Olmert told Ha'aretz: "The Jewish organisations, which were our power base in America, will be the first to come out against us, because they will say they cannot support a state which does not support democracy and equal voting rights for all its residents".

Olmert's coalition is under severe strain, although officials believe it is unlikely to break apart at this stage. But that could change if the talks lead to relinquishing control of East Jerusalem, which Palestinians see as their capital. Such a move would face fierce opposition from the PM's rightwing and ultra-orthodox partners.

Appearing in the Naval Academy's Memorial Hall, flanked by Olmert and Abbas, Bush opened the Nov. 27 event by saying: "We meet to lay the foundation for the establishment of a new nation: A democratic Palestinian state that will live side by side with Israel in peace and security. We meet to help bring an end to the violence that has been the true enemy of the aspirations of both the Israelis and Palestinians". He added: "Achieving this goal is not going to be easy", declaring the time had come for peace and Palestine. Olmert and Abbas echoed the same time-has-come refrain in their own remarks. Abbas shook hands with Olmert and Bush and then put all of the most divisive issues squarely at the centre of the talks scheduled to begin on Dec. 12.

On Nov. 28 the Bush administration appointed former NATO commander James Jones to act as a liaison between the two sides. Jones, a retired Marine Corps general, will report to Secretary Rice. In coming months, Jones might be able to assure the talks avoid some of the traps faced in 2003 when, after the US presented the road map, both sides fell short on pledges - Israel to stop building West Bank settlements and the PNA to control radical groups like Hamas and Islamic Jihad.

Jones has served in Iraq and Turkey, but most of his career has been far from the Middle East, in Asia, Europe or the US. He grew up in Paris, where his father was a businessman, before graduating from the Georgetown University School of Diplomacy.

As observers in the region judge how forcefully the US presses the two sides for progress, the role of Ms Rice will be of particular interest. She has shunned the shuttle diplomacy many of her predecessors tried. But she has visited the region repeatedly this year while helping to draw up an invitees list for Annapolis broad enough - including the initially reluctant Saudis - to itself constitute success.

On CBS on Nov. 28, Rice said: "Clearly, there are some reasons for hope and for optimism". But she emphasised, as did Israeli and Palestinian spokesmen, that the ultimate decisions had to be taken by the two direct participants. She said: "The United States won't be able to do this for them. They will have to do it for themselves. But the United States will be a strong partner, we will be a strong facilitator, and we will do everything that we can".