Despite violence, Israelis, Palestinians keep working on treaty

JERUSALEM -- Israeli and Palestinian moderates are close to a draft peace treaty, both sides said Monday, but at least one potential deal-breaker remains unresolved: the fate of Palestinian refugees.

Even if completed, the 40-page document would have largely symbolic value since those negotiating it are not in positions of real power. However, it could serve as a guideline in future formal negotiations.

In the West Bank, Israeli troops shot and killed an 8-year-old boy on Monday as Palestinian youths pelted tanks with rocks and bottles, defying an Israeli curfew order. Seven Palestinians were wounded.

The emerging document is a result of behind-the-scenes meetings during much of the 26 months of violence.

The key figure on the Israeli side is former Justice Minister Yossi Beilin, a member of the moderate Labor Party. Beilin, who did not represent Labor in the talks, told Israel TV on Monday that difficult issues were for the first time being discussed in detail.

On the Palestinian side, the team was led by Information Minister Yasser Abed Rabbo, who said he was initially only representing himself, but on Sunday was given a more formal role by the Palestinian Authority.

Abed Rabbo said the draft is based on previous negotiations. "We are trying now to reach a detailed agreement on all the issues," he said.

But at least one sticking point remains -- the fate of refugees. "If the Palestinians demand that there be a Palestinian right of return to Israel, there will be no agreement," Beilin said.

Beilin said the draft could be presented to both peoples to show that there is still hope for peace. However, neither side believes the draft will be completed before Israel's elections on Jan. 28.

Israeli Prime Minister Ariel Sharon, who is running for re-election, has rejected the previous negotiations as a starting point, charging that Israel gave away too much. He would offer the Palestinians a truncated state after a long interim stage, an approach the Palestinians reject.