Israel-Palestinian Peace Deal Possible; Rice

RAMALLAH, West Bank (CNN) — Laying the groundwork for
President Bush’s upcoming trip to the Middle East, U.S. Secretary of
State Condoleezza Rice said Sunday a peace agreement between Israel and
the Palestinians can be reached by the year’s end.

Condoleezza Rice held talks with Palestinian and Israeli leaders.

“This is very painstaking work … it is labor-intensive work but it is
necessary work,” Rice said at a joint news conference with Palestinian
President Mahmoud Abbas.

“We continue to believe that it is an
achievable goal to have an agreement between the Palestinians and the
Israelis by the end of the year and by the end of President Bush’s
term.”

Rice met Saturday night and Sunday morning with Israeli
Prime Minister Ehud Olmert. Her visit — one of many she has made in
recent months — has been overshadowed by a police investigation into
Olmert, who was questioned by police Friday.