Abbas delays peace talks walkout

Palestinian president Mahmoud Abbas said he would wait at least until next Monday before deciding whether to pull out the talks following the end of the Israeli ban on West Bank settlement construction.

That gives a breathing space for the US mediators to produce a compromise.

Mr Abbas repeatedly threatened to withdraw from the newly launched negotiations if Israel resumed building in the settlements.

Palestinians oppose all Israeli construction in the West Bank and east Jerusalem, areas they claim for a future Palestinian state.

But with the stakes so high, Mr Abbas said he would not make any hasty decision on withdrawing. He said he would weigh his options with Palestinian leaders before discussing the matter with the 22-member Arab League next Monday.

"We will not have any quick reactions," he said. "After this chain of meetings, we might publish a position that clears up the position of the Palestinian and Arab people after Israel has refused to freeze settlements."

Mr Abbas urged the Israeli government to extend the slowdown of settlement construction for three or four months to allow for a discussion of "fundamental issues."

Israeli Prime Minister Benjamin Netanyahu imposed the restrictions last year to help coax the Palestinians to the negotiating table. But under pressure from pro-settler elements in his governing coalition, he has said he will not extend the order, which expired at midnight.

He has, however, left the door open to some sort of compromise. He urged the Palestinians to continue negotiations, and his chief negotiator has remained in Washington to work with mediators on reaching a deal.

As the the ban expired, Israeli settlers said they would resume building new Jewish homes in West Bank settlements. But there was no immediate burst of building activity.

Mayor Oded Revivi, in the Efrat settlement, said banks and developers were reluctant to get into commitments, fearing construction would be stopped again.

And one settler leader, Dani Dayan, who said land-moving equipment would begin laying the groundwork for new Jewish homes, cited money problems and developers' previous commitments as he predicted only a few hundred homes would be built in the next few months. "Nothing spectacular is happening," he said.

An Israeli military ban on Palestinians prohibiting them from entering Jewish areas of the West Bank could also be an impediment to speedy construction. Imposed as a security precaution throughout the week-long Jewish Sukkot holiday, it prevents Palestinian labourers who build the settlements from showing up for work.

US-led efforts to work out a compromise over the past week failed, though Washington reiterated late Sunday its call for continued construction curbs.

"We remain in close touch with both parties and will be meeting with them again in the coming days," State Department spokesman PJ Crowley said. "We remain focused on the goal of advancing negotiations ... and encourage the parties to take constructive actions toward that goal."

Senior Israeli and Palestinian negotiators remained in the US to speak to American officials.