Kerry appoints new Middle East envoy as Israelis and Palestinians meet Israeli protesters hold posters with bloody hands reading 'prison release form' during a demonstration against the proposed release of Palestinian prisoners (AP) Mr Kerry said a new path toward "reasonable compromise" in the Mideast has emerged, and that Mr Indyk was "realistic" about the difficulties facing the Israelis and Palestinians and U.S. negotiators in the resumption of the long-stalled talks. Sources close to negotiations said that Mr Kerry could announce a date for the resumption of formal negotiations by the end of today, and set a goal of nine months for the two sides to reach an agreement. Michael Herzog, a veteran Israeli negotiator and former brigadier general in the Israeli Defence Force, said that target appeared very ambitious. This is an uphill struggle because there are significant gaps between the parties on the core issues, there is no faith [trust] between the parties and no agreed terms of reference. So it is not going to be easy," said Brig Gen Herzog. He added that it was not clear if the nine-month target was for a detailed peace agreement or a "framework agreement," a halfway house which would establish the fundamental compromises necessary to flesh out a comprehensive peace deal. However in a sign of the long road ahead, even as their respective negotiators prepared to meet in Washington, Israelis and Palestinians were already sparring as disagreements emerged over what should be the starting-point for talks. Because of a shroud of secrecy cast deliberately by Mr Kerry it remained unclear yesterday exactly what the terms of reference are for the talks, especially on the crucial issue of whether or not they will be based on Israel's 1967 borders, with land swaps. That is a precondition Mr Abbas has set that could require Mr Netanyahu to break with hard right coalition partners and for Israel to evacuate many of the more than 500,000 settlers it has moved into the occupied West Bank since 1967. Abdullah Abdullah, a Palestinian legislator who is deputy commissioner for international relations of Mr Abbas's Fatah movement, told the Daily Telegraph that the US invitation for today's talks spells out clearly that the negotiations are to be based upon the armistice line between Israel and the West Bank that existed before the 1967 Middle East war, with land swaps. Israel captured the West Bank and Gaza Strip during the fighting. 'This is in writing and the Israelis can't over-jump it. The US is mediating the talks so it sets the rules and these are the terms of reference. If the Israelis don't like that, they shouldn't be coming. But a senior Israeli official said that Israel rejects the 1967 borders with swaps as a basis for the talks. We did not agree to that. Israel rejected the Palestinian demand for this as a precondition for talks. A spokesman for the US embassy in Tel Aviv declined to reveal what the terms of reference are or say what the US stance is. "These are closed, private discussions," he said. The talks in Washington, scheduled to last only two days, are being billed as procedural sessions to set the timetable and logistics for further negotiations, due to take place in the region. Yossi Beilin, the Israeli architect of the 1993 Oslo agreement with the Palestinians and a former leader, of the dovish Meretz opposition party, did not give the effort to reach a full peace agreement resolving all the issues in dispute much chance of success. "The gap is so wide that even if the US pushes them a bit they will not meet," he said. In the West Bank city of Ramallah, Noor Khatib, a photographer who is a father of seven month old twins, was no more optimistic. We are afraid that after all these years of negotiation, this will be a new trap for the Palestinian Authority. Long talks without any results, covering for occupation. The US has set a nine month time limit for the negotiations.