41.   Netanyahu prompted Arab concern by ruling out further territorial concessions to its Arab neighbours in return for peace and rejecting the creation of a Palestinian state.

42.   Officials here agree that the conflict is not between Israel and its Arab neighbours.

43.   Syria has criticised its Arab neighbours for concluding separate deals with Israel instead of holding out for a comprehensive Middle East peace accord.

44.   The direction the new government chooses to take in its foreign policies is being closely watched by its Arab neighbours.

45.   The European Union is aiming to help forge closer business ties between Israel and some of its Arab neighbours in a three-day conference opening here on Tuesday.