Barak Ravid, Diplomatic Correspondent at Israel's

Haaretz Daily

newspaper, says the Israelis agreed to a ten-month moratorium on building settlements in the West Bank, which will expire in September - at the same time that proximity talks will end.

"I don't think that the Palestinians will see a full freeze of building in East Jerusalem," he said. "This will not happen. Especially through a public declaration by Mr. Netanuyahu. It might happen [de facto] on the ground, but the Palestinians won't get the public statement that they want on it."

Ravid offers his view of the Palestinian position. "I think that the PA has decided that at least publically it should embrace the efforts of President Obama and his envoy, Mr. Mitchell, and to show that they are on board. Because at the end of the day and the end of those four months, the U.S. will determine whose fault it was that nothing was achieved," he said.

He says he believes the purpose of the proximity talks is to facilitate a new U.S. peace plan. "The administration knows that there's actually no chance of getting any success out of it, but it needs to show to both sides and to the international community that it tried through negotiations, it failed, so now we can put forward a peace plan of our own," said Ravid.

But PLO Envoy Areikat credits the new American administration for its renewed commitment to breaking the Middle East impasse.

"From day one, the Obama Administration has shown serious engagement by appointing Senator Mitchell the day after Obama was inaugurated. I think they have a team of experts who are very well informed about the situation in the Middle East," he said.