Rice: Peace deal could happen by year's end

By Haaretz Correspondent and News Agencies , By Avi IssacharoffIsrael and the Palestinians can still reach a peace agreement by the end of the year, despite the recent violence in the Gaza Strip, visiting U.S. Secretary of State Condoleezza Rice said yesterday. Rice, who met with Palestinian Authority President Mahmoud Abbas and Palestinian Prime Minister Salam Fayyad in Ramallah, urged both parties to return to the negotiation table as soon as possible. "What we are trying to achieve is not easy ... but I do believe it can be done," Rice said at a joint press conference with Abbas. "We need very much for everybody to be focused on peace," he added. For his part, Abbas said that "peace and negotiations are our strategic choice," but fell short of announcing a resumption of peace talks that his government cut off after the upsurge in fighting in Gaza. "I call on the Israeli government to halt its aggression so the necessary environment can be created to make negotiations succeed, for us and for them, to reach the shores of peace in 2008," Abbas said, referring to the goal - stated at a U.S.-sponsored Mideast peace conference in November - of reaching an Israeli-Palestinian peace treaty by the end of the year. A comprehensive cease-fire Palestinian sources said Abbas' discussion with Rice centered around the idea of a comprehensive cease-fire in the West Bank and Gaza. Abbas emphasized the need for a lull to allow the peace process to move forward, the sources said, adding that the PA has no problem with renewing negotiations however that an appropriate mechanism must be found to allow for unimpeded progress in the wake of the fighting. Hamas said Rice's visit was unwanted and was intended to cover up "the crimes of the occupation." Earlier, Rice visited Cairo and announced that she had waived the Congressional restrictions withholding $100 million in military aid to Egypt. The funds were released in an effort to improve bilateral relations and encourage Egypt to take a more active part in the Israeli-Palestinian peace process.