U.S. Secretary of State Kerry speaks to the media after his meeting with Palestinian President Mahmoud Abbas, in the West Bank city of Bethlehem, Wednesday, Nov. 6, 2013. Kerry waded again into the nitty-gritty of faltering Israeli-Palestinian peace talks on Wednesday, saying he was optimistic that tensions and difficulties could be overcome, even between "two proud people" struggling to reach an accommodation. Kerry was upbeat after separate meetings with Israeli Prime Minister Benjamin Netanyahu and Jerusalem and Palestinian President Mahmoud Abbas in the West Bank town of Bethlehem. (AP Photo/Majdi Mohammed) Palestinian protesters hold flags and a banner during a protest against the visit of the U.S. Secretary of State John Kerry and peace negotiations, in the West Bank city of Bethlehem, Wednesday, Nov. 6, 2013. Kerry waded again into the nitty-gritty of faltering Israeli-Palestinian peace talks on Wednesday, saying he was optimistic that tensions and difficulties could be overcome, even as both sides traded barbs about who is to blame for the current poor state of negotiations. "As in any negotiation there will be moments of up and moments of down," Kerry told Palestinians in the West Bank town of Bethlehem after meeting Israeli Prime Minister Benjamin Netanyahu in Jerusalem and before seeing Palestinian President Mahmoud Abbas. (AP Photo/Nasser Shiyoukhi) U.S. Secretary of State John Kerry arrives for the opening of a street near the Church of Nativity, in the West Bank city of Bethlehem, Wednesday, Nov. 6, 2013. AP Photo/Majdi Mohammed JERUSALEM (AP) - U.S. Secretary of State John Kerry scrambled Wednesday to salvage his signature foreign policy goal as he shuttled between Israel and Palestinian leaders, trying to keep faltering peace talks from collapse. Kerry was hit with an earful of complaints from both sides and struggled to remain optimistic in the face of rising public anger that threatens the political will of each side to negotiate seriously in pursuit of an elusive settlement. On his fifth solo trip to the region since taking office earlier this year, Kerry met twice with Israeli Prime Minister Benjamin Netanyahu in Jerusalem and once with Palestinian President Mahmoud Abbas in the West Bank town of Bethlehem. He is to see Abbas again in Amman, Jordan on Thursday. U.S.-brokered talks for Israeli-Palestinian peace began at Kerry's behest three months ago. And while there has been a blackout on commentary for all sides, little, if any, progress has been evident. The talks were supposed to produce an agreement by the end of April 2014. "As in any negotiation, there will be moments of up and moments of down," Kerry said, as the parties traded barbs about who is to blame for the current state of negotiations. "We are convinced that despite the difficulties, both leaders, President Abbas and Prime Minister Netanyahu, are also determined to work toward this goal," he said in Bethlehem, where he announced that the U.S. would give an additional $75 million in aid to create Palestinian jobs and help them improve roads, schools and other infrastructure. The assistance is designed to boost Palestinian popular support for the peace process, which is low because of Israel's continued new construction projects in areas claimed by the Palestinians for their future state. Tension was running high and on clear display after the Palestinians said a secret negotiating session on Tuesday broke down in an acrimonious dispute over Israeli settlement construction. Introducing Kerry in Bethlehem, the town's mayor denounced settlements as a "siege" on Palestinian land and people; Netanyahu opened his first meeting with Kerry by bashing the Palestinians for their behavior in the peace talks. Kerry was left to cajole the parties into believing that peace deal is not a pipe dream. "This is not mission impossible," Kerry said after a brief meeting with Israeli President Shimon Peres. It can happen. Kerry flatly denied that Abbas had in any way agreed to "condone or accept" settlement activity. "The Palestinians believe that the settlements are illegal, the United States has said it believes the settlements are not helpful and are illegitimate," Kerry said. But he quickly added: "That is not to say that they were not aware or we were not aware that there would be construction, but that that would be much better off, in our judgment, limited as much as possible." Kerry publicly acknowledged that Abbas had agreed to not take the Palestinian case for statehood to the United Nations again as long as the talks are ongoing and as long as Israel continues to release prisoners. Those prisoner releases have proved a mounting headache for Netanyahu as many Israelis regard the inmates as terrorists and murderers who should not be freed. Netanyahu, himself, was not in a charitable mood toward the Palestinians as he complained to Kerry that the talks were going nowhere. "I'm concerned about their progress because I see the Palestinians continuing with incitement, continuing to create artificial crises, continuing to avoid, run away from the historic decisions that are needed to make a genuine peace," Netanyahu told Kerry. And the acquittal in a graft trial of hardliner Avigdor Lieberman, who will return to the Israeli Cabinet in his former post as foreign minister will not be seen as helpful to the peace process. Kerry insisted he was optimistic. The deadlock has raised speculation that the U.S. may need to step up its involvement and present its own blueprint for peace early next year, or perhaps lower expectations and pursue a limited, interim agreement.