A meeting of Arab and Muslim leaders here that ended Thursday provided a venue for Saudi Arabia to put some distance between itself and the US, hand-wringing about the possible spread of Iraq's civil war, and negotiations to resolve the growing crisis between Iran and Britain...

At Thursday's summit, Arab leaders reaffirmed their support for the Saudi proposal, which offers full recognition of Israel by the Arab states in exchange for a return of Palestinian land seized in the 1967 war, East Jerusalem as the Palestinians' capital, and the return of Palestinian refugees to their former homes.

Saudi Arabia appears to be convinced that the Israeli-Palestinian conflict is the key issue inflaming Islamist revolutionaries in Arab countries, and gives Iran a wedge in gaining regional influence by inflaming anti-regime sentiments...

But Israel considers the right of return a threat to its survival, and Foreign Minister Tzipi Livni called for Arab concessions before moving forward. Israeli Deputy Prime Minister Shimon Peres has called for negotiations, though...

Daniel Levy, a key member of Israeli negotiating teams with the Palestinians in the 1990s and now senior fellow at the New America Foundation in Washington, says Israel should make clear that it will meet all the land demands in exchange for compromise on the return of Palestinians.

"Every time [Foreign Minister] Livni says 'refugee' someone sitting next to her should say '67,' " says Mr. Levy. He also says a more careful tone from Israel could be helpful.

"If you want the Saudis and the Arab League to make certain modifications ... is sending the foreign minister to say, 'This is what you have to do, Arabs,' the right way to go about it?.."

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