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Section I. International Affairs


                                         PALESTINIAN STATEHOOD FADES
                            A suicide attack last week that killed 14 casts more doubt on the
                            viability of a possible Palestinian state
                            JERUSALEM - US Undersecretary of State William Burns arrived in
                            Israel  last  week  bearing  a  road  map  to  settle  the  Israeli-
                            Palestinian  conflict.  But  analysts  here  say  the  basic  concept
                            underlying Middle East peace efforts - a state for both peoples - is
                            becoming obsolete.
                            The  road  map,  part of  a  United States  push  to  muster regional
                            support for war against Iraq, outlines steps to create a Palestinian
                            state alongside Israel. The  idea of coexisting  states,  based on  a
                            land-for-peace  formula,  has  been the  blueprint  for peace efforts
                            for more than a decade.
                            But as Mr. Bums was arriving to tout the latest incarnation, Israelis
                            and  Palestinians  were  increasingly  questioning  whether  an
                            independent Palestinian entity is even feasible.
                            "If we were offered [a state] now It might be viable, but I don't know
                            if it will be practical in three, five, seven years," says Palestinian
                            Minister of Labor Ghassan Khatib. "Given political reality, the
                            settlement policy, and the radicalization of Palestinian politics, I
                            think that every day the viability of the  two-state solution is less
                            and less."
                            Gulf  of  mistrust  Analysts  point  to  the  steady,  sprawl  of  Israeli
                            construction in the Occupied Territories, the vast gulf of mutual
                            distrust that has widened over two years of  bitter fighting, and a
                            lack of political will.
                            "Looking  at  the  situation  objectively,  it's  hard  to  resist  the
                            conclusion  that  the  two-state  idea  is  in  deep  trouble,"  says  one
                            diplomat.



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