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DATE=10/15/00

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL / PALESTINIANS (L)

NUMBER=2-267967

BYLINE=MEREDITH BUEL

DATELINE=JERUSALEM

CONTENT=

VOICED AT:

INTRO: Israeli and Palestinian officials say they have low expectations that a summit opening Monday in Egypt will lead to any major progress in the Middle East peace process. As Correspondent Meredith Buel reports from Jerusalem, about 100-people, mostly Palestinians, have died in more than two-weeks of violence.

TEXT: Israel and the Palestinians say there is little hope Monday's summit in the Egyptian Red Sea resort of Sharm el-Sheikh will result in progress in the peace process.

More than two-weeks of bloody violence has badly eroded trust between both sides.

Israeli Prime Minister Ehud Barak met with his Cabinet and said the Palestinian leadership is finding it very difficult to make decisions related to a peace agreement.

Palestinian negotiator Saeb Erekat says people should not have high expectations about the summit.

U-N Secretary General Kofi Annan says there is a risk the crisis could expand beyond the Middle East and threaten countries around the world.

/// ANNAN ACT ///

It is a crisis that has affected this region, but it is broader than that. We have seen demonstrations outside this region, in Indonesia, even in the United States. It is going to affect global economic growth. Oil prices have hit their highest level in 10-years. It is going to affect all countries, rich and poor. We have also seen what is happening in stock markets around the world. This is an urgent and major crisis for all of us.

/// END ACT ///

In a statement about the summit, the Israeli government says it wants an immediate stop to the fighting and the establishment of - mechanisms to prevent - further acts of violence.

The statement says Israel wants the Palestinians to arrest militants from the Islamic Jihad and Hamas groups recently released from prison. Israel is also calling for a halt to incitement by the Palestinian media and the preservation of Jewish holy places in the Palestinian territories.

Palestinian officials say Mr. Arafat is expected to demand that an international inquiry be setup to investigate the violence. The Israelis are rejecting that idea and say they will support a fact-finding probe led by the United States. The Palestinians also want Israel to pull its tanks and troops back from flash points in the West Bank and Gaza Strip and lift the closure of the territories.

The Israeli and Palestinian leaders are going to the summit with different goals and demands, along with enormous domestic pressure from their constituencies.

The violence was sparked late last month when Israeli opposition leader Ariel Sharon visited a sensitive site in Jerusalem's Old City that is sacred to Muslims and Jews. (SIGNED)

NEB/MB/ALW/RAE