Rice heads to Mideast far from glow of Annapolis

By Sue Pleming

WASHINGTON (Reuters) - U.S. Secretary of State Condoleezza Rice travels to Israel and the Palestinian territories next week, with U.S. credibility at stake and peace talks stymied by escalating violence in Hamas-run Gaza.

Three months ago, Israelis and Palestinians pledged at a peace conference in Annapolis, Maryland, that they would seek a deal by the end of the Bush administration in January 2009.

The window is fast narrowing and diplomats and experts note talk has become more vague, with suggestions of only a framework agreement by year-end, or a so-called "shelf agreement" that could be dusted off by the next president.

But a senior U.S. official said it was too soon to write off prospects of a deal and Rice's goal on this trip would be to keep talks moving between Israeli Prime Minister Ehud Olmert and pro-Western Palestinian President Mahmoud Abbas.

She also will try to get both sides to take immediate steps to improve security on the ground, particularly in Gaza, which was seized by the Islamist group Hamas last June. Abbas's Fatah forces control the West Bank.

"It is very difficult to insulate the negotiations process from these other events. Concern has been growing about that," said the senior official, who spoke on condition he was not named because the issue is so sensitive.

"That means pushing both sides to get some steps that will give people a sense that there is a positive story here rather than what we are seeing right now which is quite negative."

Rice is expected to lean on Israeli Defence Minister Ehud Barak to concede to Abbas's demand to ease checkpoints in the West Bank and give Abbas's forces more responsibility. But officials said she would make clear U.S. support for Israel's right to defend itself.