The key issues include Israeli settlements in the West Bank, the right of Palestinian refugees to return to Israel, the future status of East Jerusalem, which the Palestinians want as a capital, borders, security and water supply, CNN reported.
The talks follow a visit to the region last week by U.S. President George Bush, who urged Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas to follow through on commitments they made at a peace conference Bush sponsored in Annapolis, Md., on Nov. 27.
Under the 2003 U.S. brokered "road map" to peace, Israel must halt West Bank settlement activity and Palestinians must dismantle militant groups.
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