This Israeli Government cannot be partners for peace

Ghassan Khatib, Palestinian analyst

But after months of bloodshed, the Palestinian leader knows his people are in radical mood, and that there is widespread popular support for continuing the uprising against the Israeli occupation of the West Bank and Gaza Strip.

There is also deep distrust, and Palestinian analyst Ghassan Khatib says the report cannot change the fundamental problems on the ground.

"I look at the political reality in Israel, and I look at the nature of this Israeli Government and I become really pessimistic," he says.

He adds: "This Israeli Government, its composition, the mentality of the main people in it, cannot be partners for peace."

Settlement key

The Palestinians insist that the commission's recommendation for a freeze in all building activity in the Jewish settlements is key to the successful implementation of the report.

Mitchell warned violence could get worse

But the Israelis are still adamant that existing Jewish settlements built on occupied land must be allowed to expand.

They also say it is wrong to link the settlements with the ongoing violence.

"Settlements have been built and expanded during all the last years. It's never been used as an excuse for violence," says Israeli Justice Minister Meir Shitrit.

"I don't think that anybody should accept anything in excuse for violence," he adds.

Amid the diplomacy, the violence goes on.

There have been gun battles in the West Bank, and in the Gaza Strip, Israeli tanks have once again crossed into Palestinian territory.