Defense Minister Ehud Barak, who, upon entering his meeting with US special envoy to the Middle East George Mitchell in New York, was asked whether the smiles on his face and on Mitchell's face meant they were close to reaching an agreement, said, "The meaning of this is that smiles don't cost money."However, Barak added, "We are more optimistic than ever.
Defense Minister Ehud Barak and U.S. special Mideast envoy George Mitchell agreed during their talks in New York this week that Israel must take action toward easing access for Palestinians in the West Bank and halting settlement activity.
Their four-hour discussion brought Israel and the United States closer to ending its dispute over settlement construction, a source close to Barak said.
Mitchell did not explicitly tell Barak that Israel must impose a complete freeze on settlements - as the U.S. has been demanding - but rather emphasized that Jerusalem must take "action" on the matter, according to a Defense Ministry statement following the talks.
Asked whether Israel would declare a temporary settlement
building freeze, Barak told reporters following the meeting: "I think that it's a little bit too early to predict.
"We are considering every positive contribution Israel can make towards the taking off of a significant important peace effort," he said.
While significant progress was made in the talks, said the source close to Barak, differences remain over a number of subjects.
"There is still disagreement, but the direction is positive and there is a good dialogue," a source close to the defense minister said.
