Newscast for Thursday, September 2, 2010

Mideast leaders agree to continue direct talks as key issues remain
Today, Palestinian and Israeli leaders met face to face for the first time in nearly two years for direct talks in Washington DC. At the opening of talks this morning, Israel Prime Minister Benjamin Netanyahu and Palestinian Authority President Mahmoud Abbas sat on either side of Secretary of State Hillary Clinton.

Netanyahu called the talks an "unprecedented opportunity" but also said a permanent peace would require "concessions" from all parties.

"Together we can lead people to an historic future, that can put an end to claims and to conflict. Now this will not be easy. A true peace, a lasting peace would be achieved only with mutual and painful concessions from both sides."

Palestinian President Mahmoud Abbas indicated what are sure to be key points in the talks, including Israeli settlement construction in the West Bank and the blockade on Gaza. He also emphasized a commitment to security following Tuesday's killing of four Israelis near Hebron. Abbas spoke through an interpreter.

"Once again we want to state our commitment to follow on all our engagements including security and ending incitement and we call on the Israeli government to move forward with its commitment to end all settlement activities and completely lift the embargo on Gaza Strip and end all forms of incitement."

Later in the day Middle East envoy George Mitchell said the parties had concluded a 90-minute session, which he described as a "long and productive meeting on a range of issues." Mitchell said parties would return to talks in two weeks, in the Middle East.

For more, we're joined by a regular guest on FSRN, Phyllis Bennis. She's director of the New Internationalism Project at the Institute for Policy Studies and an expert on the Middle East region. She’s also the author of Understanding the Palestinian-Israeli Conflict: A Primer. She joins us from Washington DC.

Construction materials still blocked from entering Gaza
One of the most contentious parts of the Middle East peace process is Israel's policy in Gaza. In June, following the deadly attack on an aid ship headed to Gaza, Israel announced it would ease its blockade on the coastal enclave, saying it would allow raw building material for vital UN projects into the territory. But two months later, crucial building materials are still not being allowed to enter and tens of thousands continue to wait to rebuild their homes. FSRN's Rami Almeghari has more.

US issues indictment against Pakistan Taliban leader
The US is taking steps to provide legal justification for its use of military force in Pakistan. The State Department added the Pakistani Taliban to its official list of terrorist organizations, imposing new economic sanctions on the group. And the Justice Department brought an indictment against Hakimullah Mehsud, a leader of the Tehreek-i-Taliban Pakistan. But legal experts say that doesn’t mean they’re pursuing him only in the courts. The US military has been trying to kill Mehsud with drone strikes for years. Tanya Snyder has more.

Argentina increases public spending on poverty, education
As the US and European nations cut government spending as part of extreme austerity measures, one Latin American country is increasing public spending. In Argentina, the spending on programs targeting poverty has revived approval ratings for the South American nation’s first woman president Cristina Fernandez de Kirchner. FSRN’s Marie Trigona reports from Buenos Aires.