Israeli and Palestinian officials are set to hold fresh talks on the reopening of the Gaza-Egypt border, with US Secretary of State Condoleeza Rice staying on in the region in the hope of a deal, according to a Palestinian official. Rice might even join the talks late on Monday night between Israeli Defence Minister Shaul Mofaz and Palestinian Civil Affairs Minister Mohammed Dahlan, the official added, asking not to be identified. Earlier on Monday, Rice decided to delay her departure to Asia while talks continued to nail down an agreement on reopening the Rafah terminal, according to her spokesman.Aljazeera's correspondent in Palestine reported that the talks conducted by Rice with Palestinian and Israeli officials had failed to produce a breakthrough. State Department spokesman Sean McCormack had said Rice would fly to Jordan to pay a condolence call for the hotel bombings, but return to Jerusalem rather than continue on to Pusan for an Asian regional conference. "We're still working the issues with both sides," McCormack said of efforts to reopen the Rafah terminal, a key transit point between Egypt and Gaza which has remained largely closed since Israel's pullout from the Gaza Strip, completed on 12 September.
Before news of the failure was confirmed, Palestinian President Mahmoud Abbas had struck an optimistic note after talks with Rice, saying an Israeli-Palestinian deal on reopening the Gaza-Egypt border was imminent.