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Brown meeting Palestinian leader Brown meets Palestinian PM Fayyad
(about 2 hours later)
Palestinian Prime Minister Salam Fayyad is holding talks with Gordon Brown in Downing Street ahead of meetings with financiers in the City of London. Gordon Brown has said he hopes Israel and the Palestinians will "overcome" the issue of settlements in the West Bank in the near future.
Mr Fayyad told the BBC ahead of the meeting in No 10 "the moment has not gone" for there to be a two-state solution in the Middle East. The UK prime minister held talks with his Palestinian counterpart Salam Fayyed at Downing Street.
He said to look for another concept would be "the wrong way to go". He said that "everybody" thought peace was possible but added that Israel had to dismantle the settlements, which were a "blockage" to progress.
The visit comes at the start of a two-day conference at which Mr Fayyad will seek to woo UK investors. Mr Fayyed is also meeting City of London financiers for investment talks.
'Barrier'
After the Downing Street meeting, Mr Brown told a joint press conference: "One of the blockages to that (peace) is clearly the settlement issue.
"We have consistently said - and I've said this to successive Israeli prime ministers and presidents when I've met them - we've consistently seen that as a barrier to reaching the agreement that everybody thinks is possible.
"And I hope in the talks in the next few weeks and months this will be recognised as a barrier that's got to be overcome."
Mr Brown also said: "Establishing a viable Palestinian state with a stable economy and flourishing private sector is a crucial part of this process."
The trade and investment forum taking place in the City would provide a chance to explore further opportunities for development, he added.
Mr Brown said: "It will promote Palestinian economic development, it will demonstrate the resilience of the Palestinian private sector, it will show the considerable opportunities for partnerships with the United Kingdom."