Special report: Palestine-Israel Relations

　RAMALLAH, July 29 (Xinhua) -- Palestinian negotiator Saeb Erekat said Tuesday that the Palestinian Authority rejects Israeli Prime Minister Ehud Olmert's statements that he is not convinced a peace can be achieved at the end of the year.

    Olmert had stated earlier that he is not convinced that there is a possibility to achieve peace with the Palestinians before the end of the year due to differences on the issues of Jerusalem and refugees.

    "Olmert's statements reflect Israel's intentions to escape from implementing its commitment in the roadmap plan and reflects its desire to turn the year 2008 to a year of settlements instead of a year of solution," Erekat told reporters.

    Erekat denied earlier reports saying that Abbas accepted the principle of exchanging territories in the West Bank, adding "such reports are just Israeli testing balloons to confuse the Palestinians."

    After the Annapolis peace conference held in the U.S. last November, the Israelis and Palestinians agreed to launch peace talks on permanent status issues and try to reach a final agreement by the end of 2008.

    However, since then, no progress was announced in the peace negotiations between the two sides. The Palestinians threatened that the continuation of settlements in the West Bank would undermine the entire peace process.

    "Olmert knows very well there will be no Israeli-Palestinian deal until the two sides agree on all the permanent status issues, which are Jerusalem, settlements, refugees, borders, water and security," said Erekat.