The highlights of the first week of the Washington round of talks, which ended last Thursday, were Israel's proposal for limited autonomy for Palestinians in the occupied West Bank and Gaza Strip, and the start of a meaningful dialogue between Israel and Syria. However, beyond the positive tone and improved atmosphere compared to earlier rounds of bilateral talks, there was little apparent progress on fundamental issues.

Israel is offering the Palestinians an elected administrative council for a five-year period in the occupied territories. In its view, the purpose of the current talks is to work out an interim arrangement for limited autonomy, with a final decision on the future of the territories being deferred for subsequent negotiations after a trial period of co-existence. The Palestinians see this as a reworking of former proposals, and want a body that would have legislative powers. The Israelis counter that that would amount to a sovereign parliament and is unacceptable.