Settlements, regional peace on Israel-U.S. agenda

By Jeffrey Heller

JERUSALEM (Reuters) - Defense Minister Ehud Barak said he would discuss with a U.S. envoy Monday a compromise over a peace plan calling for an Israeli settlement freeze and seek ways to promote regional peace.

Barak, who last met envoy George Mitchell Tuesday in New York, travels to London later Sunday for another round of talks aimed at narrowing a rift with U.S. President Barack Obama, who has demanded a halt to settlement activity.

He told reporters he was aiming for a "broader understanding with the United States on diplomatic moves, including a comprehensive regional agreement."

Barak said Israel was also seeking "a way to translate" the road map, a 2003 peace plan, into "a path acceptable to us, the United States and others."

After last meeting Mitchell, Barak made a link between any Israeli agreement to limit settlement expansion and progress on Arab states "normalizing" relations with Israel.

Barak has publicly raised the possibility Israel might temporarily refrain from starting new building projects -- while continuing many under way -- in settlements in return for initial steps toward a regional peace agreement.

The Israeli proposal falls short of demands by Obama and the Palestinians for a settlement freeze in the occupied West Bank.

Palestinian President Mahmoud Abbas, who has said he has been meeting road map obligations to rein in militants, has made a resumption of peace talks with Israel conditional on a complete cessation of settlement activity.