New proposals would raise the capital requirements for the largest and most important banks by 9%, down from 19%
It goes without saying that Saudi Arabia, the world's largest oil producer, has no diplomatic ties with Israel. So in a way it can be termed a significant achievement for the Bush administration if the country is willing to sit down with Israel. In fact, Saudi Arabia recently revived its old peace initiative, the so-called Arab plan, offering Israel full diplomatic ties with 22 Arab states if it withdraws from the Arab territories it occupied in 1967.
But America still has to go a long way before it can promote lasting peace in the region. The US moves to keep Syria and Hamas out of the picture are not very realistic. Syria is a big player in the region and a neighbour of Israel. Hamas, on the other hand, won a democratic mandate from Palestinian people. Besides, Syria has already made it clear that it will be party to any peace process if Israel returns its occupied territories.
More importantly, the US will not be able to bring about lasting peace in the region if it does not persuade Israel to keep its end of the bargain. Israel must be convinced to make real and meaningful progress in its engagement with the Palestinians. The country must respond to the Saudi gesture by discussing the border issue with the Arab states.
Olmert is yet to agree to a number of core issues like occupied Jerusalem and Palestinian refugees. The Israeli authorities maintain that they have to act in a practical manner because more violence will ensue if such peace talks raising expectations fail to reach a common ground.
New proposals would raise the capital requirements for the largest and most important banks by 9%, down from 19%
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