Quartet hopes package will unlock Middle East talks

By Arshad Mohammed and Conor Sweeney

MOSCOW (Reuters) - Two members of the international quartet of Middle East mediators suggested on Friday that stalled indirect peace talks between Israel and the Palestinians may be unblocked in coming days.

Speaking after a meeting in Moscow of the group -- comprising the United States, European Union, United Nations and Russia -- quartet envoy Tony Blair told Reuters he hoped for a package of measures to get the talks started.

"I hope very much that in the next few days we will have a package that gives people the sense that, yes, despite all the difficulties of the past few days, it is worth having proximity talks and then those leading to direct negotiations," he said.

Blair declined to give details of the package of measures, saying: "That will become clear as the days unfold."

U.S. Secretary of State Hillary Clinton, in Moscow for the quartet meeting, also suggested progress. She said Israeli Prime Minister Benjamin Netanyahu had given a "useful and productive" response to her concerns on the settlement issue during a telephone conversation on Thursday. She did not give details.

The quartet called for direct negotiations between Israel and the Palestinians with the aim of producing an agreement within 24 months to end Israeli occupation and establish an independent Palestinian state.

The latest obstacle to the peace talks came 10 days ago when Israel announced, during a visit by U.S. Vice President Joe Biden, that it would build 1,600 new housing units in a part of Jerusalem that it captured in 1967 and annexed unilaterally.

The quartet called on Israel and the Palestinians to avoid "provocative actions and inflammatory rhetoric" and told Israel to freeze all settlement building, dismantle outposts erected since March 2001 and halt demolitions in East Jerusalem.