Foreign Minister Avigdor Lieberman on Thursday told special U.S. envoy George Mitchell that a different approach was needed to solve the Middle East conflict, because that of past Israeli governments had failed.

"New ideas" must be found, because the path taken by previous governments did not lead to "good places, to say the least," Lieberman told Mitchell, who arrived in Israel Wednesday night.

This was Mitchell's third round of talks in Jerusalem and Ramallah since his appointment, and the first during the tenure of Prime Minister Benjamin Netanyahu.
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A statement released by Lieberman's office quoted the minister as saying, "Past prime ministers were prepared to make wide-ranging concessions and the result of the Olmert-Livni government was the second Lebanon war, the operation in Gaza, severance of relations with Qatar and Mauritania, [abducted Israeli soldier] Gilad Shalit still in captivity and the peace process at a dead end."

Mitchell, for his part, told Lieberman that the U.S remains committed to a two-state solution for rectifying the Israeli-Palestinian conflict. The Netanyahu government has thus far declined to openly commit to such a two-state solution.

"I reiterated to the foreign minister that U.S. policy favors, with respect to the Israeli-Palestinian conflict, a two-state solution which will have a Palestinian state living in peace alongside the Jewish state of Israel," Mitchell told reporters.

"We look forward also to efforts to achieving comprehensive peace throughout the region," he added.

Despite the potential for tension after Lieberman used his inauguration speech to flatly declare that Israel was not bound by commitments it made at a U.S.-sponsored summit in Annapolis, Thursday's talks were held in a "very good" atmosphere, his office insisted.

"We spoke about really close cooperation and we are looking forward to the next meeting and to some really deep dialogue," Lieberman told reporters after the meeting. "It was a great opportunity to exchange some ideas, and we spoke about really close cooperation."

In his comments to the press, Lieberman made no mention of a Palestinian state, an issue that could put Netanyahu's right-leaning government on a
collision course with U.S. President Barack Obama.

Mitchell also said that Lieberman told him about Israel's desire to "make economic improvements" in the West Bank. Palestinian leaders have rejected any notion of an "economic peace" and have said U.S.-backed talks with Israel could not resume until Netanyahu committed to statehood.

Mitchell to ask PM to clarify position on peace talks

Meanwhile, Mitchell is expected to ask the prime minister during their meeting Thursday to clarify Israel's position regarding the resumption of negotiations with the Palestinians and Syria.

A decision has been made in Washington to follow a regional peace plan that will be based on the Arab peace initiative, bolstered by international security guarantees for Israel.

Under this plan, Arab states will proceed with normalization of their ties to Israel in parallel with progress in the negotiations to be held on the Palestinian and Syrian tracks.

A senior administration official told Haaretz several days ago that the U.S. is committed to the rules of the Quartet, which sets the acceptance of a two-state solution as a precondition for talks with a Palestinian unity government that includes Hamas.

The official added that the U.S. expects the Israeli government to adopt the same principle, in line with the commitments made by the previous Israeli government at the Annapolis conference in November 2007.

Palestinian sources said Wednesday that they intend to present clear demands to Israel through the U.S. envoy as preconditions for resuming final status talks with Israel.

In an interview with the daily Al-Ayyam published by the Palestinian Authority, the sources were quoted as saying that PA President Mahmoud Abbas will ask Mitchell to press Israel to recognize the principle of two states for two nations.

Moreover, the Palestinians would like Israel to agree to talk about all aspects of a final settlement that will ultimately result in the establishment of a Palestinian state with Jerusalem as its capital.

According to the report, the Palestinians will also insist on an end to the razing of homes in East Jerusalem and to settlement activity. The Palestinians are also hoping to discuss with Mitchell plans for a visit to the White House by Abbas, which will most likely take place at the end of the month or early next month.

Mitchell held his first meeting in Israel Wednesday night with Defense Minster Ehud Barak,whom he met at his home in Tel Aviv. "It is possible and necessary to reach agreement and understanding between the U.S. and Israel on all the matters at hand," Barak was quoted as saying.

The defense minister briefed Mitchell on all the steps taken by Israel in the West Bank as part of efforts at closer security coordination with the Palestinian Authority, which in part aims at easing the daily lives of ordinary Palestinians.

Barak is scheduled to meet Thursday with Russia's deputy foreign minister Alexei Borodavkin, who is also visiting Israel. The defense minister will ask the Russian official not to sell Iran advanced anti-aircraft missiles, especially the S-300 system.

Israel has sought to prevent the supply of advanced air defense systems to Iran for years, and news reports have Moscow promising to sell Iran such missiles. However, to date no delivery has been confirmed.