Palestinians Delay Declaration of Statehood in the Midst of Stalled Peace Talks with Israel
DARYN KAGAN, CNN ANCHOR: And we want to turn to world news now, as Palestinian leaders say they have kept alive the prospect of peace with Israel by putting off a planned declaration of independence. Despite that move, many Israelis remain pessimistic about a lasting peace. We're going to get the latest, now, on the story from CNN's Jerrold Kessel, who joins us live from Jerusalem. Jerrold, this deadline was supposed to be Wednesday when the Palestinians would declare a state. What is the significance of their putting this off for now?</s>JERROLD KESSEL, CNN CORRESPONDENT: Well, today, Daryn, we've seen Yasser Arafat and the Palestinian leadership reaping worldwide praise, really, for their decision to defer the declaration of state, which was, as you say, to have taken place on Wednesday, as early as Wednesday, September 13th, the anniversary of the start of the peace process seven years ago and when the peace process would formally have run its course. There's some grudging praise for the Palestinians in the Arab world, where Yasser Arafat is deemed to have possibly been weak, but by and large, it has been praised because most international leaders, who have been putting pressure on Mr. Arafat, believe as he himself said, that this does give the peace process, that faltering peace process with Israel, a last chance. And Israelis have -- the Israeli leadership, at any event -- have been -- has been praising the Palestinians for the decision to hold off on statehood for now at their -- their session in Gaza yesterday and Saturday. And they are saying that this was as a result of that international pressure, but nonetheless they acknowledge that this does give a last opening for the peace process to come to a successful fruition. But, alongside that, as you rightly say, the Israelis are very skeptical about this peace process going anywhere. Just a short while ago, the prime minister Ehud Barak's top aide, as the prime minister is headed back from his meetings at the New York millennium meeting and with President Clinton last week and over the weekend said that the peace talks are really stagnating and they're not going anywhere. The Israelis saying that the Palestinians are going back to square one in their talks on -- in their approach to the peace process. That's exactly what the Palestinians are saying. They're saying the Israelis are reneging and neither side believes that the other side is prepared to go forward. And each of the two leaders, Ehud Barak and Yasser Arafat, as this faltering peace process seems to be slipping out of their grasp, is taking the position that unless the other takes a move and gives ground, there simply will not be a peace deal. And they add to that, the fact that, if there is no peace deal, well, then they can live with it because they have other options. Well, some observers say that neither man has really decent options outside success in the peace strategy and if there is any hope for the peace process now, going into what has been termed a final conclusive month, it could be, perhaps, because neither Yasser Arafat nor Ehud Barak has really a decent alternative strategy. That's perhaps the most positive thing out of that negative appraisal of -- that the peace process might come to a -- a fruition in the weeks ahead. But it is, at this stage, a long, long shot.</s>KAGAN: Jerrold, beyond the peace process, beyond gaining world favor, do the Palestinians actually do themselves a favor by putting off the declaration of statehood? This is, after all, a country to be that still doesn't have an army; it doesn't have a currency. It still has a lot to do in just organizing itself as a nation, and would be able to do that better if it had more time.</s>KESSEL: Yes, I think what they did yesterday was, in fact, very, very smart, from their point of view, because the peace process in itself has really been kept alive at many times in its difficult marathon process during these seven years by the ability of both -- of leaders on both sides -- the Palestinian leader Yasser Arafat, the changing Israeli leaders -- to tip toe between dreams -- fulfillment of dreams and national aspirations on one hand and their perception of the reality, their own political realities. And that was true of the Palestinians' decision yesterday, because they put off statehood without actually declaring that they were delaying, but they did, alongside stating they weren't going ahead with the declaration, indicate what they would do, and that was to prepare themselves for statehood on several fronts: constitution, they said, elections down the line, the possible admission -- future admission to United Nations. They say -- they say they won't be sitting idly by and when they reconvene in two months' time, they'll be looking to the possibility of where statehood has gone and then, perhaps, they'll be in an even stronger position in the international community to recognize that state. They are in no position the get that kind of international recognition at this stage, while the peace process still has something of a chance -- Daryn.</s>KAGAN: Jerrold Kessel in Jerusalem. Jerrold, thank you very much.