No peace deal if Israel keeps building-Palestinian PM

BERLIN (Reuters) - President George W. Bush's drive for peace between Israel and the Palestinians by the end of his term in office is unlikely to succeed unless the Jewish state stops building in the West Bank, the Palestinian premier said.

"If Israel does not stop extending Jewish settlements immediately, there will be no peace deal in 11 months. The expansion of Jewish settlements puts at risk the continuation of the peace talks," a German newspaper on Monday reported Prime Minister Salam Fayyad as saying.

"Theoretically, the talks could succeed by December. Whether that is probable is another matter. It depends on the implementation of the peace road map," Fayyad told Germany's Sueddeutsche newspaper.

The interview was distributed late on Monday but was conducted on Sunday.

Israeli and Palestinian officials began peace negotiations last week, the result of a U.S.-sponsored conference in Annapolis, Maryland, but there is deep public scepticism as to whether they will reach a deal.

Fayyad attacked Israel for failing to stick to the part of the 2003 peace "road map" by building Jewish settlements in the West Bank.

"While we are talking about the main areas of dispute, Israel is extending its settlements in the West Bank. That is the biggest problem," Fayyad was quoted as saying.

Pressed by the United States, Israeli Prime Minister Ehud Olmert has ordered an effective halt to new construction in settlements. However, Israel does not view building on West Bank land it has annexed to Jerusalem as "settlement building".

(Reporting by Madeline Chambers, Editing by Matthew Jones)