Palestinian leader Yasser Arafat agrees to trade land with Israel to accommodate Jewish settlers in the West Bank, and proposes to deal with Palestinian refugees in Lebanon before those in other countries, an American Jewish leader who met with him said.
Israel and the Palestinians are waiting for the United States to decide whether to offer bridging proposals to break the logjam in their negotiations, officials from both sides said on Thursday.
The talks are deadlocked over control of holy sites in Jerusalem, though other key issues, including Palestinian refugees, Jewish settlements and borders, have not been resolved.
Arafat is committed to reaching an agreement, but hasn't decided on what to sign, when to sign, said abraham foxman, national director of the anti-defamation league, an American Jewish group, who met with Arafat late on Wednesday.
New ideas raised by Arafat included solving the plight of Palestinian refugees in Lebanon first, because unlike in other countries, refugees in Lebanon are not allowed to work, Foxman said.
Also, Arafat expressed willingness to trade territory to allow Israel to keep some of its settlements in the West Bank and to post an international peace force in the Jordan valley.

Bureau Report