The New Nation - Internet Edition

AFP, Jerusalem

Israeli and Palestinian leaders failed to reach a breakthrough and agree on a joint statement during talks on Monday, but vowed to keep hammering away at a declaration for a key US peace meeting.

Ahead of the encounter Israel vowed to stop building new settlements in the occupied West Bank and said it would free hundreds of Palestinian prisoners ahead of the US conference expected next week in Annapolis, Maryland. Israeli Prime Minister Ehud Olmert and Palestinian president Mahmud Abbas met for two and a half hours at the premier's Jerusalem residence seeking to break the deadlock over the statement due to be presented at the US meeting. The joint declaration is to serve as the basis for final-status negotiations due to kick off after the event.