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* Kerry on his fourth visit to try to revive peace talks

* Netanyahu says Israel wants to restart negotiations

By Arshad Mohammed

JERUSALEM, May 23 (Reuters) – U.S. Secretary of State John

Kerry began a round of separate talks with Israeli and

Palestinian officials on Thursday but acknowledged there was

considerable scepticism that the two sides would resume peace

negotiations.

Kerry has now visited Israel four times in his four months

in office to try to restart peace talks.

The negotiations broke down in late 2010 in a dispute over

Israeli building of Jewish settlements on occupied West Bank

land that the Palestinians want for a state.

“I know this region well enough to know that there is

scepticism, in some quarters there is cynicism and there are

reasons for it. There have been bitter years of disappointment,”

Kerry said as he and Israeli Prime Minister Benjamin Netanyahu

posed for pictures.

“It is our hope that by being methodical, careful, patient,

but detailed and tenacious, that we can lay out a path ahead

that can conceivably surprise people but certainly exhaust the

possibilities of peace.”

Kerry will meet Palestinian President Mahmoud Abbas later in

the day.

Netanyahu said he wanted to restart talks with the

Palestinians.

“It’s something I hope the Palestinians want as well and we

ought to be successful for a simple reason – when there’s a

will, we’ll find a way,” Netanyahu said.

Last week, Kerry telephoned Netanyahu to voice U.S. concern

at Israel’s plan to declare legal four unauthorised West Bank

settler outposts.

Most of the world deems all Israeli settlements in the West

Bank as illegal. Israel, which captured the land in the 1967

Middle East War, disputes this and distinguishes between about

120 government-authorised settlements and dozens of outposts

built by settlers without official sanction.

The main issues that would have to be resolved in a peace

agreement include the borders between Israel and a Palestinian

state, the future of Jewish settlements, the fate of Palestinian

refugees and the status of Jerusalem.

In his visits to the region, Kerry is also trying to put

together an economic package for the Palestinians to go

alongside the U.S. political initiative.

European diplomats, in meetings with Palestinian leaders,

have been trying to steer them away from any notion the European

Union might present a peace plan of its own. British Foreign

Secretary of William Hague was also due to hold talks with

Netanyahu and Abbas later in the day.

(Reporting By Arshad Mohammed and Crispian Balmer, Editing by

Jeffrey Heller and Angus MacSwan)