国际英语新闻：Israel and Palestinians grapple over restarting talks

A spokesperson in Erekat's office said Sunday afternoon that the Palestinian demand to halt Israeli construction also included East Jerusalem.

Hamas' Damascus-based leadership, meanwhile, slammed the prospect of renewed negotiations, saying in a statement Sunday that talks would serve Israel as a "new umbrella for it to commit more crimes and violations against the Palestinian people."

Netanyahu's remarks on Saturday came in response to a demand by Abbas that Israel freeze construction in East Jerusalem, announce an extension of the existing 10-month building freeze in the West Bank last September, and -- under a condition very unlikely to be accepted by Israel -- that Israel transfer the Jordan Valley and areas in the West Bank currently under full and partial Israeli control to the Palestinians in any final-statue agreement, according to Israel Army radio.

"This is the security belt of the State of Israel," a Jordan valley official was quoted as saying by an Israeli news site. Israel considers the sparsely-populated Jordan Valley region a buffer against a mechanized military assault from the east.

Economic concerns could also stand in the way.

Danny Ayalon, Israel's Deputy Foreign Minister, said Sunday that recent Palestinian boycotts of Israeli foodstuffs and products produced in West Bank settlements could also damage prospects for talks.

"If the boycott continues, it may damage the progress of the talks and the foundation of trust between us," Ayalon told the Knesset, Israel's parliament.

In April, Palestinian Minister of Economy Hasan Abu-Libdeh said that all goods produced in West Banks settlements would be boycotted by the PNA.

The PNA on Sunday slammed the Israeli threats over its decision to outlaw products of Israeli settlements in the West Bank markets.

Ghassn al-Khatib, spokesman of the Palestinian government, told Xinhua that linking the talks with barring the settlement products was just "an Israeli excuse."