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Kerry to return to Mideast in bid to save peace talks

AFP, Jerusalem
Washington's top diplomat wrapped up a lightning visit to Israel yesterday but was to return within 24 hours as speculation grew that a jailed US-Israeli spy may be key to saving peace talks.
But as IIS Secretary of State John Kerry departed, Israel reissued a call for tenders for hundreds of settler homes in annexed east Jerusalem, in a move likely to exacerbate Palestinian opposition to continue negotiating.
After flying in from Paris on Monday evening, Kerry' met Israeli Prime Minister Benjamin Netanyahu for two hours before entering talks with Palestinian negotiators at his Jerusalem hotel.
Early' yesterday, he held a second two-hour meeting with Netanyahu, with sources close to the talks saying they discussed a deal to free spy Jonathan Pollard as a way of breaking the logjam.
US peace efforts are teetering on the brink of collapse after Israel refused to free a fourth and final group of 26 veteran Palestinian prisoners which would have completed an agreement that brought the sides back to negotiations last July.
Furious Palestinian officials have warned that unless Israel changes its stance on the prisoner releases, they will break off negotiations, which are due to end on April 29 in any case.
And in another move likely to infuriate the Palestinians and put any continuation of talks in jeopardy, Israel reissued tenders for 708 homes in Gilo, a settlement neighbourhood of Arab east Jerusalem.
US efforts are currently focused on getting the parties to agree an extension to the end of the year.
The Palestinians have demanded a freeze on all settlement
construction, including in east Jerusalem.
Kerry' will return to the region today, heading for the West Bank administrative centre of Ramallah to meet Palestinian president Mahmud Abbas, State Department spokeswoman Jen Psaki told reporters travelling with him.
Separate sources close to the negotiating teams confirmed Washington is considering a proposal to release Jonathan Pollard.
Pollard was arrested in Washington in 1985 and sentenced to life imprisonment for spying on America on Israel's behalf.
"The emerging deal... contains the following elements: the release of Jonathan Pollard before the Passover holiday (in mid April) and the extension of the negotiations with the Palestinians into 2015," one of the sources told AFP.
He said the fourth batch of prisoners would be freed - "including Israeli Arabs" - and Israel would also agree to free another 400 security prisoners not involved in deadly anti-Israeli attacks.
There was no immediate comment from the Americans. On Monday, Psaki had refused to be
drawn on the issue.
US officials insist things are moving, saying only that there are a lot of complex pieces to put in place.
On Monday, the Palestinians gave Kerry a 24-hour deadline to come up with a solution to the prisoner row, warning failure to do so would see them turning to UN bodies to press their claims for statehood.
Palestinian negotiators say they will only agree to extend the talks if Israel frees another 1,000 prisoners, including political heavyweights, the sick, and women and children.