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A palestinian state, side by side, there has to be accommodations provisions for israeli security. here's more: >> a deal is possible, and that's what we're looking for, an historic peace agreement between israelis and palestinians and agreement that protects israel's most vital national and security interests. >> reporter: palestinian president abbas told reporters traveling with him, quote, if there is good will, then it is more than enough. if they, the israelis, refuse to extend the halt of settlement activity, talking about the west bank, then it will be difficult for us to continue these...

Coalition government so it's hard for him to take action without infuriating part of the political coalition. can you lay that out? >> sure. the prime minister has a right-wing coalition. combination of his own party with about a 20% share of the seats in the parliament. several parties from the right wing and one party from the left, the labor party, where amud barack the defense minister sits so he's constrained by the fact that the right wing parties don't want to see a continuation of the current settlements freeze. they want to see a resumption of settlement activity. they don't want to g...

Dead end. president obama's first sustained on the ground peace initiative apparently includes assurances, given to the palestinians towards a palestinian state. >> we are confident that president obama and his administration will guarantee at end and before two years we will have a two-state solution. >> reporter: palestinians continued small demonstrations in the west bank against settlement expansion including building in east jerusalem. palestinians say the u.s. has given guarantees regarding settlement activity, its danger and the need for it to stop. the obama administration has been ang...

Dead end. president obama's first sustained on the ground peace initiative apparently includes assurances, given to the palestinians towards a palestinian state. >> we are confident that president obama and his administration will guarantee at end and before two years we will have a two-state solution. >> reporter: palestinians continued small demonstrations in the west bank against settlement expansion including building in east jerusalem. palestinians say the u.s. has given guarantees regarding settlement activity, its danger and the need for it to stop. the obama administration has been ang...

Including building in east jerusalem. the palestinians say the u.s. has given them guarantees regarding, quote, settlement activity, its danger and the need for it to stop. the obama administration has been angered by israeli construction in largely arab east jerusalem. the israeli government says it's being more judicial about that construction as brokered talks begin with u.s. envoy george mitchell here. >> rick, if everybody says these talks will go nowhere, why are they participating? certainly the obama administration has pressured both sides to participate and the israelis believe at the...