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Rice: No substitute for Palestinian state

BERLIN, May 30 (UPI) -- Israeli-Palestinian peace "unlocks the key" to "further engagement between the Arabs and the Israelis," U.S. Secretary of State Condoleezza Rice said in Berlin.

Rice cautioned Israel against engaging in peace talks with Syria, instead of pursuing a peace plan with Palestinian factions, The Washington Post reported.

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"My understanding is that it is the view of Israelis, and certainly our view, that the Syrians are engaged in behavior right now that is destabilizing to the region," Rice told reporters.

She said there is "no substitute" for creating a Palestinian state.

Rice's efforts to lay the groundwork for Israeli-Palestinian peace talks stalled when Palestinian factions renewed fighting among themselves and members of Hamas began firing rockets at Israel. Israeli Prime Minister Ehud Olmert, under fire for his handling of the war with Lebanon last year, was also seen as hesitant to make concessions in the talks, the Post reported.

Rice was to visit Austria and Spain on her current European diplomatic tour.

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