Rice: Mideast deal unlikely on her watch

TEL AVIV, Israel, Nov. 6 (UPI) -- U.S. Secretary of State Condoleezza Rice acknowledged Thursday a Mideast peace agreement is unlikely before President Bush leaves office.

On her way to Tel Aviv, Rice told reporters on the plane a deal between Israel and the Palestinians might have been possible if Foreign Secretary Tzipi Livni, the new leader of the Kadima Party, had been able to form a government. Israel is now set for elections in February.

Rice, after her arrival, met with Livni at the home of the U.S. ambassador, Ynetnews reported. Livni said later they talked about Iran and the Palestinians as well as recent political developments in the region.

Livni said her country had become closer to the United States during the Bush administration.

"I know there are doubts regarding the Annapolis process, but we are realistic enough to understand the reality we are faced with," she said. "I am optimistic enough to believe that reality can be changed."