I strongly disagree with this conspiracist outlook. There is no credible evidence that the investigation was launched primarily or wholly to impede negotiations.

The fact is, negotiations are ongoing. Prime Minister Olmert's tenure has not come to an end. He may yet remain in office for months (or longer, if he is not indicted). Foreign Minister Livni--the likely successor at the head of Kadima--has also been pragmatic. The Palestinians still have time to reach for compromises even before a possible end of Prime Minister Olmert's tenure. Will they show flexibility necessary to reach agreement?

To date, if one accepts some of the news accounts published in Haaretz and the Jerusalem Post, both credible newspapers, Israel has made the Palestinians two substantive offers concerning the West Bank. First, it offered 88% of the West Bank exclusive of land swaps. The Palestinians rejected that offer. Israel then offered 91.5% of the West Bank exclusive of land swaps. The Palestinians rejected that offer.

The Palestinians have yet to provide a counteroffer. If they are intent on reaching a negotiated outcome, they should do so. Moreover, they need to take a step in Israel's direction to reciprocate for the step Israel has taken in their direction. It will be a convergence of positions that offers the best prospects of an agreement. Palestinians' waiting for Israel to meet their demands will likely preclude such an outcome as Israel's proverbial "red lines" likely fall short of the opening Palestinian demands.

Having said that, I also believe the differences between the two sides are too great to be overcome in a year and that the notion of reaching a final settlement or outline of a final settlement before the end of 2008 was always unrealistic. A more modest interim arrangement, which would be feasible, would represent a more productive approach.