Riyadh gives talks with Israel cautious welcome

Mark Tran and agencies, Guardian, 1/08/07. Earlier this week, the US announced massive arms sales to the region as part of its latest diplomatic push, with Saudi Arabia and other Gulf states set to receive $20bn (£10bn) worth of weapons, while Israel is being offered $30bn.

Ms Rice, who is now in Israel, was expected to press Mr Olmert to respond to Saudi overtures by making more concessions to the Palestinian president, Mahmoud Abbas, whose Fatah faction still controls the West Bank.

Israeli officials said Mr Olmert was prepared to discuss borders and other core issues in "general terms" that could lead to an "agreement of principles" for establishing a Palestinian state.

But Mr Olmert has not agreed to fully fledged negotiations over the three main final status issues - borders, the status of Jerusalem and Palestinian refugees - as proposed by Mr Abbas. Israeli officials said any commitment now could raise expectations and lead to further violence if talks broke down.