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Israelis and Palestinians Have Agreed to Focus on Narrowing Differences on Core Issues

Aired July 21, 2000 - 6:00 p.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

JUDY WOODRUFF, CNN ANCHOR: At the Camp David summit, now under the temporary stewardship of U.S. Secretary of State Madeleine Albright, the issue of Jerusalem has turned out to be a seemingly insurmountable obstacle. Israelis and Palestinians have agreed to focus on narrowing their differences over other core issues.

CNN's Jerrold Kessel reports.

(BEGIN VIDEOTAPE)

JERROLD KESSEL, CNN CORRESPONDENT (voice-over): The known or the reported disagreements put aside in the latest joint photograph of the Israeli and Palestinian leaders. Despite the smiles, still somber moments as they grapple with the key unresolved dispute: sovereignty in Jerusalem. It was at the heart of Wednesday's crisis that almost scuttled the summit, and it's now at the heart of U.S. ideas projected at propelling the summit to a positive outcome on President Clinton's return. Those ideas are said to relate to the degree of sovereignty Palestinians might have in parts of East Jerusalem, which they want as their future capital. In exchange, Israel would annex some Jewish settlements in the West Bank as part of Jerusalem.

One Israeli minister speaking from Jerusalem suggests Israel is amenable.

RABBI MICHAEL MELCHIOR, ISRAELI CABINET MINISTER: There will be some kind of symbols of sovereignty, of joint sovereignty, and those places, this is something which I think we can accept.

KESSEL: No official Palestinian reaction, but also outside Camp David, the head of the Palestinian mission in Washington says there's a different trade-off.

HASAN ABDEL-RAHMAN, PLO REPRESENTATIVE TO UNITED STATES: The Israeli recognition of Palestinian sovereignty in East Jerusalem. The Palestinian will recognize Israeli sovereignty in West Jerusalem

KESSEL: The Jerusalem dispute is also central because of the fallout effect. Prime Minister Barak, in keeping with an all-or- nothing approach, has, say Israeli sources, told President Clinton that should the disagreement over the sovereignty issue persist, any understandings reached on other core issues -- Israeli withdrawal in the West Bank, the creation of an independent Palestinian state and the fate of Palestinian refugees -- would be null and void.

MIGUEL ANGEL MORATINOS, E.U. PEACE ENVOY: And instead of looking at what are the gaps still on the table, we have to looked at what has been already achieved.

KESSEL (on camera): Over the coming 48 hours, the negotiations at Camp David will reportedly seek to advance toward agreement on all the other key issues, leaving the crunch decisions on Jerusalem to await President Clinton's return here toward the end of the weekend.

Jerrold Kessel, CNN, near Camp David, Maryland.

(END VIDEOTAPE)

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