Partial peace deal possible in 2008, says Olmert

Israeli Prime Minister Ehud Olmert told parliament yesterday a partial deal with the Palestinians could be reached this year on borders, security and refugees but not Jerusalem, officials said.

Olmert, who earlier this month said Israel and the Palestinians had never been so close to an agreement, has been talking up peace prospects as he clings to office in the face of a police investigation that could force him to step down.

Israeli officials said Olmert envisages agreeing a joint document with Palestinian President Mahmoud Abbas that sets out borders for a future Palestinian state, security arrangements and a way to deal with millions of Palestinian refugees, but leaves out the even more contentious issue of Jerusalem.