PA Chairman Mahmoud Abbas
PA Chairman Mahmoud AbbasIsrael news photo: Flash 90

The Palestinian Authority warned on Saturday that long-standing lack of movement toward peace with Israel was threatening the concept of a two-state solution, AFP reported.

The PA also warned that the standstill in peace could lead to PA Arabs being left in an Israeli-run "apartheid" state.

"Without a tangible shift from a conflict management approach towards a just and lasting political agreement... Israelis and Palestinians will inevitably slide into one state governed by the principles of apartheid," the PA said in a report prepared for a meeting of international donors in New York on Monday.

"The status-quo is not sustainable neither politically, nor economically," the report in English said.

"The establishment of a politically and economically viable State of Palestine is impossible without ending the Israeli occupation of the whole West Bank and Gaza Strip, including East Jerusalem," added the 22-page document.

It called on donor members of what is known as the Ad Hoc Liaison Committee to pressure Israel to dismantle its checkpoints in Judea and Samaria and allow unhindered development of all areas, including Area C, which is under full Israeli control.

It also asked them to make diplomatic protests to Israel over what it called Israel’s demolition of homes belonging to PA Arabs.

Direct negotiations between Israel and the PA have been on hold since late September 2010. Prime Minister Binyamin Netanyahu agreed to PA Chairman Mahmoud Abbas’ demands to stop building homes for Jews in Judea and Samaria. The PA leader, however, rejected returning to talks because, he said at the time, the freeze did not extend to all of Jerusalem.

Abbas has constantly demanded that Israel accept the indefensible pre-1967 lines as final borders, release all Arab terrorists from its jails, and halt construction in Judea, Samaria and east Jerusalem for a second time before talks begin.

He recently announced that he will ask the UN General Assembly to recognize a “state of Palestine” on September 27.

The date is just over one year after Abbas’ first statehood bid, in which the PA sought recognition of statehood from the Security Council. That bid failed due to a lack of support in the 15-member council.

PA Foreign Minister Riyad al-Malki has predicted that Arab countries support a unilateral PA bid for statehood recognition in the UN General Assembly.

He said he believed the PA would win 130-140 votes should the motion be put forward at the world body, securing a majority in the General Assembly.

The Obama administration said this week it will oppose the PA’s renewed statehood bid at the UN and will “make the case” at the United Nations for Israeli- PA talks when Abbas submits it.