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Jerusalem – Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas discussed in broad terms Tuesday the issues most important to the creation of a Palestinian state in advance of a U.S.-sponsored peace conference proposed for this fall.

Israeli government officials said the nearly three-hour session, the latest in a series of meetings between the leaders that have been encouraged by the Bush administration, touched on as yet unfulfilled Olmert pledges to Abbas to improve living conditions for Palestinians.

But Israeli government spokesman David Baker said the leaders, in their private session, also discussed “fundamental issues that are essential to achieving the two-states-for two-people objective.” The formulation is shorthand for such overarching matters as the final borders of a future Palestinian state, the status of Jerusalem and the claim by Palestinian refugees of the right to return to their homes in Israel.

Following the meeting, chief Palestinian negotiator Saeb Erekat told reporters that Tuesday’s session addressed statehood but “did not reach the level of details.”

The meeting took place as Israeli and Palestinian officials debate the form and agenda for the fall conference, proposed by a Bush administration seeking a clear diplomatic success in the Middle East before the end of its term. The date has not been set, but Israeli and Palestinian officials are working on the assumption it will likely be held in November. The guest list is also still in the works.

Olmert, whose domestic political standing remains weak, has advocated the drafting of a general “declaration of principles” as the template for discussion over how to restart a peace process.

Abbas, also struggling politically, has pushed for a more detailed and binding agenda that would address the core issues in an international setting.

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