The Palestinians want peace talks with Israel to continue, US envoy George Mitchell insisted yesterday, as he visited Egypt and Jordan in a last-ditch effort to salvage fledgling direct negotiations.

“Despite their differences, both the government of Israel and the Palestinian Authority have asked us to continue these discussions in an effort to establish the conditions under which they can continue direct negotiations,” Mr Mitchell told reporters after meeting Egyptian President Hosni Mubarak.

“They both want to continue these negotiations, they do not want to stop the talks,” he added.

The Middle East envoy, who has been touring the region since Tuesday, flew to Amman from Cairo yesterday, in his effort to rescue the faltering peace process. The US-backed negotiations, which began on September 2, have been on the brink of collapse since Israel refused to extend a 10-month moratorium on new settler homes in the West Bank that expired a week ago.

The Palestine Liberation Organisation, an umbrella group that includes most Palestinian factions except the militant Hamas, on Saturday urged President Mahmud Abbas to withdraw from the talks over continued Israeli settlement construction.

“The resumption of negotiations requires tangible steps from Israel and the international community beginning with a halt of settlement activity,” the PLO said.

Israeli Prime Minister Benjamin Netanyahu reacted by urging Mr Abbas “to continue the peace talks without a break with the aim of reaching a historic accord in a year.”

In Amman, Mr Abbas met Jordanian King Abdullah II on Sunday, and insisted that Israel should freeze settlement building before he returns to peace talks. “Of course we will not stop contacts with the Americans,” a palace statement quoted Mr Abbas as saying following the talks.

“We will continue to communicate with them to find a solution to the Israeli settlements problem, which should stop before we go back to the negotiations.”

Mr Abbas has said he would not make a final decision on the talks until after meeting Arab foreign ministers in Libya on Friday, giving US mediators another few days to try to strike a compromise.

“Israel refused to renew a freeze on the settlement building, and we could not continue the talks. So now, there is a problem and we will follow up on through Arab coordination,” he added.

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