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By Ray Fleming

IT is difficult to align Barack Obama's remarks on Middle East peace at the UN General Assembly last week with his apparent acceptance at the weekend of Israel's refusal to extend the moratorium on its illegal settlement building in the West Bank.

At the start of the President's new initiative this was clearly identified as the first hurdle that had to be jumped if any progress was to be made towards his goal of an Israeli-Palestinian two state agreement within one year. His cautiously optimistic words at the UN were greeted with only scattered applause -- probably reflecting the widely-held view that yet another American attempt at brokering a deal beween Israel and the Palestinians is unliklely to succeed. Palestinian President Abbas made it plain from the start that if Israel's illegal settlement construction restarted after the deadline of 26 September he would withdraw from negotiations. Despite any sign of compromise from the Israeli side Abbas has agreed to delay his walk-out until he has consulted other Arab nations next week. That makes sense because it also gives Mr Obama extra time in which to persuade Benjamin Netanyahu, Israel's prime minister, that he really must make the political gesture that alone will enable talks to proceed. The settlements are illegal and it seems extraordinary that the President of the United States does not have sufficient influence over Israel to make Mr Netanyahu accept that fact and act accordingly.