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Olmert-Abbas meet raises peace hopes

Israel to release $100 million frozen tax funds

JERUSALEM: Israeli Prime Minister Ehud Olmert and Palestinian President Mahmud Abbas sparked hope for the stalled West Asia peace process on Sunday by meeting for the first time in six months, but observers warned against expecting too much from the encounter.

The two leaders met at Mr. Olmert's residence in Jerusalem late on Saturday, kissing and warmly shaking hands after a two-hour dinner followed by one-on-one talks.

``The two leaders expressed their will to cooperate, as true partners, in an effort to advance the peace process'' and reiterated support for reaching ``a solution of two states living side by side in peace and security,'' Mr. Olmert's office said in a statement late on Saturday.

The two leaders' long-awaited encounter — their first since an informal meeting in Jordan in late June — sparked hope that the peace process could be nudged from the slumber in which it has been for the past six years.

``Our intention is to begin ongoing negotiations in order to advance the peace process that we want so much,'' Mr. Olmert said on Sunday at the opening of a weekly Cabinet meeting.

Mr. Olmert said he planned to continue to meet Mr. Abbas. During the two-hour meeting, Mr. Olmert and Mr. Abbas reached a series of concessions, including the transfer of $100 million in frozen taxes collected on behalf of the Palestinian Authority. — AP, Xinhua

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