
Israel and the Palestinian Authority on Monday issued their respective  conditions for the renewal of bilateral peace talks.
As expected, the  Palestinians repeated their demand that Israel completely halt the construction  of all Jewish homes in Judea, Samaria and on the eastern side of Jerusalem. The  Palestinians also insisted that the settlement freeze not have a temporary  timeframe, as did the one offered last week by Israeli Prime Minister Benjamin  Netanyahu.
Netanyahu has pointed out that since taking office he has  already implemented a de facto settlement freeze in Judea and Samaria, but that  it will only last as long as the Palestinians reciprocate by honoring their  peace commitments. Netanyahu refused to extend the building freeze to  Jerusalem.
Israeli Foreign Minister Avigdor Lieberman, meanwhile, told  visiting international envoys Tony Blair and Javier Solana on Monday that Israel  will back off from meaningful negotiations if the Palestinians promote  unilateral steps.
Lieberman was referring to Palestinian Authority Prime  Minister Salaam Fayad's plan to create a de facto Palestinian state, and to even  declare it as such within the coming year.
Fayad plan includes opening  several international airports under PA control, as well as building a fully  functioning army with US assistance. Israel completely rejects the possibility  of the Palestinians operating a full-fledge military force, and wants certain  controls over entry points such as airport to prevent Palestinian groups like  Hamas from using them to import weapons.