When the two met in Jerusalem Sunday, Yishai expressed displeasure with the current political climate in the Palestinian National Authority and said only an economic conference could unite the region behind Palestinian President Mahmoud Abbas, Ynetnews reported.

"Today we have a Palestinian Authority with two heads. It is impossible to sign an agreement with only 40 percent of the Palestinian people," he told Rice. "We need a real reinforcement, rather than a virtual one. Only an economic conference can bolster Abu Mazen."

Yet Rice rejected that motion, instead saying the upcoming Annapolis conference will serve as a forum for core issues and direct negotiations for the troubled region.

"I am convinced that the Palestinians need an independent country," Rice said. "The Annapolis conference will discuss the core issues, but the negotiations will be held in a direct manner."