Abbas rejects Israeli suggestion of settlements compromise

Palestinian president Mahmud Abbas rejected an Israeli suggestion on Friday that a compromise on settlement building may be possible ahead of a scheduled moratorium ending that threatens to derail Middle East peace talks. Two days before the conclusion of the 10-month partial moratorium on settlement construction in the occupied West Bank, Israel indicated it was willing to cut a deal acceptable to the United States and the Palestinians, who both want an extension of the restrictions. "Israel is prepared to reach a compromise acceptable to all parties," a senior government official said when asked about US President Barack Obama's call for the moratorium to be extended. But he also stressed that "there cannot be zero construction" in West Bank settlements. Prime Minister Benjamin Netanyahu was "making intensive efforts to reach such a compromise before the expiration of the moratorium on September 26," added the official, asking not to be identified. Israel was previously adamant that the restrictions would not be renewed, even though Abbas had already threatened to walk out of the US-brokered peace talks over the issue.