Abstract
Israeli and Palestinian negotiators are supposed to produce a 'framework agreement on the final status' of the Occupied Territories by 13 February 2000. Both sides face difficult choices, but Israeli military occupation, economic domination and US support leave Israel better placed to achieve its chief ends: the annexation of most Israeli settlements; retention of most of Jerusalem; and no return for Palestinian refugees to Israel. This leaves the Palestinian Authority and its president, Yasser Arafat, in a difficult position. Corruption and authoritarianism are making Arafat's rule increasingly unpopular among many Palestinians, and failure to achieve Palestinian goals will add to his problems. There is a danger, therefore, that neither the Palestinian state nor the settlement it signs will prove stable in the long term.
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