Israel is on the diplomatic offensive. A high-level delegation is on its way to Washington to soften US opposition to a controversial security barrier along the West Bank.
The US is particularly unhappy with a planned stretch of the structure which cuts deep into Palestinian land south of the Jewish settlement of Ariel.
Washington has warned Israel could lose part of a multi-billion-dollar loan over the issue. Israel says the barrier, a mixture of fences and walls, will foil suicide bombers. Palestinians have dubbed it a "New Berlin Wall", saying it robs them of land they want for a future state.
Meanwhile the incoming Palestinian prime minister, Ahmed Quorei has forged ahead with efforts to form a cabinet, which he is expected to announce next week. But analysts say Quorei's support for Yasser Arafat and his attempt to include militant groups in the cabinet make him a man Israel is unlikely to do business with.
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Israeli Foreign Minister Silvan Shalom gestures during a press conference in his Jerusalem office. (AFP/Orel Cohen)