Statements by Palestinian Authority and Israeli leaders clearly indicate “we are not at a point where both have yet agreed to direct negotiations," U.S. State Department spokesman Phillip Crowley told reporters Monday.

U.S. Middle East envoy George Mitchell is expected back in the region this week, and senior PA negotiator Saeb Erekat confirmed that U.S. President Barack Obama has personally asked PA Chairman Mahmoud Abbas to agree to direct talks with Israel for a new Arab country within Israel.

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