'This Week' Transcript: Tax Deal

AMANPOUR: ... would your side -- would your side agree and see as a possible thing U.S. bridging proposals?

FAYYAD: Taken all together, I think it was clear that the secretary on the core issues had something to say, and we welcome that, as a matter of fact. I looked at her statement as a solid (ph) statement, deliberate, on each of the permanent status issues.

She had a middle (ph) definition going forward, and she did say that the United States would come up with bridging proposals as appropriate when necessary. It may be necessary. It may be unavoidable, actually, for the United States acting as a broker at some point to come in with bridging proposals so we make this happen.

AMANPOUR: Ms. Livni...


LIVNI: The good news is that the determination of the United States not giving (inaudible) process and the future treaty. Bridging proposals need to be seen in the future.

AMANPOUR: That's good news that the United States says it's going to stay committed.

LIVNI: Yes. Yes.

AMANPOUR: But, you know, many people who are big friends of Israel are really lamenting the fact that the United States has been given a -- sort of a bloody nose in -- by the Israeli government regarding these -- this settlement and the idea of pursuing these face-to-face talks.

So you -- you are sitting here with Salam Fayyad. The Israeli government, the Europeans, the United States, many governments around the world are astounded and impressed by what Mr. Fayyad has done in terms of institutional building, economic growth in the West Bank, and security development. Apparently, it's -- it's one of the best times...


AMANPOUR: ... in terms of security by the Palestinians certainly on the West Bank.

LIVNI: Yes, it is.

AMANPOUR: Why is Israel not able to give more to partners such as Mr. Fayyad to boost his credibility, to boost his ability to bring the population along, and that of the Palestinian leadership?

LIVNI: Basically, I would like to show what you said about the important thing that Salam -- that Prime Minister Fayyad is doing, what we call changing the realities on the ground. Israel is helping, is working with Salam Fayyad in order to do the best.

And this is just one part of for the future, because what he's doing is something that Israel cooperates and helps to do, but it's not enough. The idea is to have something complementary, and this is the peace treaty, the legal peace treaty between Israel and the Palestinians, so we are helping, we're working with, I think that you can say so (ph) Israel.

AMANPOUR: Are you getting enough help?

FAYYAD: No, not enough, relatively...


LIVNI: Help, but not enough.

FAYYAD: Not enough. Not enough. Not nearly enough relative to the objective of having to see the occupation come to an end in the course of 2011. I mean, that's what we were looking at. Consistent with that, one would think the...

AMANPOUR: Do you think that's even possible now?

FAYYAD: I think it is eminently possible. I think the expectations should be set right, and they should set high. Unless that begins to happen, then, you know, this -- then we'll be allowed (ph) to continue to drift along.

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