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But Mr. Facey is guarded about a resumption of building.
A poll conducted Thursday through Saturday by the Palestinian Center for Policy and Survey Research showed two-thirds of the Palestinian public favored ending the talks because of the resumption of building.
In the build-up to the US-brokered peace negotiations between Israel and Palestine, Israel's housing minister Uri Ariel announced the resumption of building work on 1,200 homes for Israeli settlers in East Jerusalem and the West Bank.
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A result, they say, has been soaring prices and a resumption of the building boom that was under way in early 2008 — one that Mr. Chanos and others have called wasteful and overdone.
But last time I looked the peace talks between Israel and the Palestinians had fallen off a cliff because of Israel's resumption of settlement-building in the West Bank.
The panel urged an immediate cessation of violence and resumption of security cooperation; confidence-building measures, including an Israeli freeze on settlement activity; and a return to negotiations.
On May 21 a fact-finding committee led by former U.S. senator George Mitchell presented its report on the causes of the violence, and both the Israelis and the Palestinians expressed readiness to accept Mitchell's call for a four-phase process leading to political reengagement: a cease-fire, a cooling-off period, confidence-building measures, and resumption of negotiations.
The resumption of trade could also represent a confidence-building measure for the Indian government, which faces increased agitation by Kashmiri separatists.
This would give the Palestinians the sense that the process is moving toward the confidence-building measures and the resumption of negotiations, both of which are important to them.
The Mitchell plan calls for a halt to violence, a cooling-off period, confidence-building measures and then the resumption of talks.
But possible confidence-building steps, such as the resumption of aid and cross-border dialogue, could still be some way off: "We have no illusions that trust is something that can be built overnight," she said.
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