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Abbas and Olmert in formal talks Abbas and Olmert in formal talks
(30 minutes later)
Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert are holding talks in Jerusalem. Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Ehud Olmert have held talks in Jerusalem.
The meeting is taking place at Mr Olmert's residence in the city. The nearly two-hour meeting took place at Mr Olmert's residence in the city.
The pair met informally in June, but these are the first formal talks between an Israeli and a Palestinian leader for a year and a half. The pair met informally in June, but these were the first formal talks between an Israeli and a Palestinian leader for a year and a half.
It comes after a recent truce following months of fighting in the Gaza Strip after the capture of an Israeli soldier by Palestinian militants in June.It comes after a recent truce following months of fighting in the Gaza Strip after the capture of an Israeli soldier by Palestinian militants in June.
Mr Abbas and Mr Olmert have both said recently that they want to re-start peace talks, but both sides have also played down the prospects for any rapid progress.Mr Abbas and Mr Olmert have both said recently that they want to re-start peace talks, but both sides have also played down the prospects for any rapid progress.
The BBC's Katya Adler in Jerusalem says the private meeting, which follows months of preparation work by Israeli and Palestinian officials, cannot be described as peace talks - rather an attempt to establish some confidence-building measures.The BBC's Katya Adler in Jerusalem says the private meeting, which follows months of preparation work by Israeli and Palestinian officials, cannot be described as peace talks - rather an attempt to establish some confidence-building measures.
Hamas sticking pointHamas sticking point
Israel has repeatedly said it will not deal with the Hamas-led Palestinian government, which refuses to recognise Israel.Israel has repeatedly said it will not deal with the Hamas-led Palestinian government, which refuses to recognise Israel.
Mr Abbas says his attempts to persuade Hamas to change its position have failed. Last week he called for early elections, but Hamas denounced this as a coup attempt.Mr Abbas says his attempts to persuade Hamas to change its position have failed. Last week he called for early elections, but Hamas denounced this as a coup attempt.
It is thought Israeli soldier Gilad Shalit is still being held in GazaThe dispute led to some of the worst factional fighting between Palestinians in years, prompting fears that the violence was descending into all-out civil war.It is thought Israeli soldier Gilad Shalit is still being held in GazaThe dispute led to some of the worst factional fighting between Palestinians in years, prompting fears that the violence was descending into all-out civil war.
Israel has been under pressure from the US and the European Union to take steps to support Mr Abbas since he called for the early Palestinian elections, our correspondent says. Israel has been under pressure from the US and the European Union in recent days to take steps to support Mr Abbas, our correspondent says.
Expected to be on the agenda at the meeting is an easing of Israeli travel restrictions on Palestinians and the removal of a number of checkpoints in the West Bank. Mr Abbas and Mr Olmert were expected to discuss an easing of Israeli travel restrictions on Palestinians and the removal of a number of checkpoints in the West Bank.
Tax demandsTax demands
Palestinian demands also include the release of some of the millions of dollars of tax money which Israel collects on the Palestinian Authority's behalf, but which it has refused to transfer since Hamas formed a government in March.Palestinian demands also include the release of some of the millions of dollars of tax money which Israel collects on the Palestinian Authority's behalf, but which it has refused to transfer since Hamas formed a government in March.
Both sides will want to discuss the shaky ceasefire between Israelis and Palestinians in Gaza. The two leaders were also expected to discuss the shaky ceasefire between Israelis and Palestinians in Gaza.
Israel wants Gaza-based militants to stop firing rockets at Israel and the Palestinian leadership wants an end to Israeli army raids in the occupied West Bank.Israel wants Gaza-based militants to stop firing rockets at Israel and the Palestinian leadership wants an end to Israeli army raids in the occupied West Bank.
Palestinian officials have also been pushing for the release of thousands of Palestinian prisoners held in Israeli jails, but Israel has said before that it will not consider the issue unless the captured soldier Gilad Shalit is released first.Palestinian officials have also been pushing for the release of thousands of Palestinian prisoners held in Israeli jails, but Israel has said before that it will not consider the issue unless the captured soldier Gilad Shalit is released first.
Correspondents say a breakthrough in the stalled Middle East peace process would help both leaders, with Mr Abbas suffering from the conflict with Hamas and Mr Olmert losing popularity in Israel over his handling of the war with Lebanon this summer.Correspondents say a breakthrough in the stalled Middle East peace process would help both leaders, with Mr Abbas suffering from the conflict with Hamas and Mr Olmert losing popularity in Israel over his handling of the war with Lebanon this summer.