secretary flatly stated, "For me, this is a simple choice: no negotiations, no security, no state."

One insider who spoke on condition of anonymity told Politics Daily that it was unlikely the talks would have even begun without back-channel communication indicating settlements would be halted. For Israeli Prime Minister Netanyahu, whose right wing coalition rejects any extension of the moratorium, and the settlers' movement, which has loudly announced it will hold him to his promise not to extend the building freeze, such an agreement threatens his hold on the prime minister's seat. The Jerusalem Post reported late Monday evening that Netanyahu was expected to use the first full opening day of talks in the region, Tuesday, to lay out the options on settlements. Ha'aretz, the Israeli daily newspaper, reportedthat Netanyahu had spent three hours in meetings with his ministers on the issue of settlements alone. He left with no resolution.

The American team – Special Envoy George Mitchell joins Secretary Clinton – faces four days of tough talks between the Israelis and Palestinians. Talks begin in Sharm el-Sheikh, a Sinai peninsula Red Sea resort town known for drawing in dignitaries with weighty issues. On Wednesday, the meetings move to Jerusalem (the first time Palestinian President Mahmoud Abbas will visit Prime Minister Netanyahu since the Israeli leader took office) and then, on Thursday, to Ramallah, on the West Bank. Joining the Americans are the Egyptians and Jordanians.

In the air, if not yet in the region, Secretary Clinton announced she was confident the first, looming, stumbling block facing Middle