The Bush administration, which returns to Middle East peacemaking with the arrival of Secretary of State Condoleezza Rice in Jerusalem today, plans to take an initially low-key approach that would rely much more on nations in the region carrying the public diplomatic burden, U.S. officials said.
Both Rice and President Bush have promised a higher level of engagement in the peace process in the aftermath of the death of Palestinian leader Yasser Arafat. But, at first, much of the U.S. effort will be symbolic or monetary -- Rice tomorrow will announce the release of $41 million in previously allocated funds to assist the Palestinian economy -- as the administration waits to see whether the Israelis and Palestinians can build trust among themselves. Rice, for instance, will not attend the summit in Egypt on Tuesday between Israeli and Palestinian leaders.
 
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The United States also will press Arab nations to step up financial support for Palestinian reform. Despite soaring oil prices, all but three nations in the Arab League have failed to make promised payments to the Palestinians, leaving $400 million uncollected. Administration officials believe that money can be used to help relieve Palestinian poverty and persuade militia members to retire.
Administration officials say they recognize the opportunity created by Arafat's death and European allies' strong desire that the United States play a more active role. But Bush administration officials also are disdainful of the Clinton administration's deep involvement in the peace process, which they believe amounted to micromanaging. Rice has rejected the idea of creating a high-powered negotiator, similar to Dennis Ross in the Clinton years, though she may establish an office within the Bureau of Near Eastern Affairs to monitor events.
A special envoy is a "tactical question" that is not called for at this point, a senior administration official said yesterday.
"When you are trying to build the institutions of a Palestinian state it does not call for the front-page diplomacy of the sort we saw in the 1990s," he said, speaking on the condition of anonymity because of the diplomatic sensitivities and because he did not want to upstage Rice's trip. "Everyone will understand the United States is in the leading role but if you are not involved in it you won't see it on the front page every day."
Rice, as she flew to London on Thursday on the first leg of her week-long trip to Europe and the Middle East, cautioned reporters not to get "in the habit of looking for the flash breakthrough."
Israeli officials support the U.S. approach, believing high-stakes meetings and summits make the process more complicated and can lead to grandstanding. "The United States cannot replace the parties," Israeli Ambassador Danny Ayalon said. "Real progress follows after the parties take the necessary steps."
But Palestinians and Europeans have argued for a deeper U.S. role, saying that only sustained high-level involvement will ensure talks between the parties do not go off the rails.
"Right now we don't trust each other," said Ghaith Omari, political adviser to Palestinian President Mahmoud Abbas. "They will not believe us; we will not believe them. We need a third party, an objective third party that can actually help us move forward, that can come when we have the inevitable disagreements, inevitable frictions that will happen -- especially at the beginning."
Administration officials say such pleas are diplomatic code for the United States putting pressure on Israel. "Everyone is looking for the United States to go back to our traditional role of delivering the Israelis," another administration official said.
U.S. officials say such pressure will only fail, especially because Israeli Prime Minister Ariel Sharon is in difficult political straits. In the coming weeks, Sharon faces rebellion from right-wing members in his coalition over his plan to withdraw from Gaza and four settlements on the West Bank and from left-wing members over his budget -- which could bring down his government and force new elections.
A key sticking point between Palestinians and Israelis is whether Abbas can begin to dismantle militant groups. Abbas, under political pressure because one group, the Islamic Resistance Movement (or Hamas), swept recent elections in Gaza, is attempting to negotiate a cease-fire. But Israelis say broader peace talks cannot take place until Abbas moves against militant groups.
Palestinians also are demanding that Israelis begin to live up their commitments in the dormant "road map" peace plan, including a freeze on settlement growth. Israeli officials say they have reached an unannounced understanding with the Americans that would allow for settlement growth within existing construction lines. A U.S. official confirmed the administration is more concerned about "outward physical expansion" of settlements.
