The New Nation - Internet Edition

AP, Jerusalem

Secretary of State Condoleezza Rice said Sunday she expects Israel and the Palestinians to take "meaningful" steps to ease Palestinian economic woes and improve Israeli security during her latest Mideast mission aimed at reviving faltering peace talks.

Rice stressed that action on both issues was and critical to energizing languishing efforts to reach a peace deal by year's end that leads to the creation of a Palestinian state.

As she spoke before heading into a flurry of meetings with senior officials from both sides, Israeli officials said they would ease at least some restrictions on the movement of West Bank Palestinians as part of efforts to improve the Palestinian economy and bolster moderates.

"There is a shared responsibility here for an atmosphere and a reality that can lead to the establishment of a Palestinian state based on security for Israel and Palestinians alike and economic viability for Palestinians," Rice told a news conference with Israeli Foreign Minister Tzipi Livni.