Rice urges continued Israeli-Palestinian dialogue

While leaving the door open for Israel to engage in peace discussions with Syria if it chooses to do so, US Secretary of State Condoleezza Rice said any such contacts would not be a substitute for Israel's ongoing talks with the Palestinians, adding that a two-state solution to the conflict would offer Palestinians a better future than that presented by extremists.

Speaking June 8 to the Associated Press Editorial Board in New York, Rice said she hopes the second round of direct talks between Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas will take place "relatively soon," but expressed doubt that talks between Israel and Syria are forthcoming.

"I've said all along if Israel believes that there is a track to pursue peace with Syria then that's fine. Now my understanding is that the behavior of the Syrian government has suggested to people that that option or that opening isn't there at this point in time," Rice said.

The secretary encouraged Israel and the Palestinians to work together on releasing Palestinian tax revenues held by Israel, describing it as an issue that can be resolved through bilateral talks.

"I understand the Israelis' concerns about what might happen to tax revenue, but we think that there are mechanisms that they could use in the ways that they have in the recent past to support important activities... among the Palestinians," she said.

In comments to the New York Daily News Editorial Board, Rice said the two sides need to re-establish confidence lost after the second Palestinian intifada began in 2000 that the future Palestinian state will be "both viable for the Palestinians and a source of security, not risk, for the Israelis."

She told the NBC News Editorial Board that now, six years since the second intifada began, "you have the great bulk of both Palestinians and Israelis believing in a two-state solution."