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Mideast leaders call for end to violence

Washington (CNN) — Direct peace talks between Israelis and Palestinians will start Thursday as President Obama urged both sides to come up with a peaceful solution to the long-running Mideast conflict.

U.S. Secretary of State Hillary Clinton is set to play the main role in the talks by hosting a meeting Thursday at the State Department with Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmoud Abbas.

The two sides will be relaunching talks that have been stalled for a year and a half.

On the eve of the talks, Obama held a working dinner with Abbas, Netanyahu, Egyptian President Hosni Mubarak and Jordan’s King Abdullah II.

“I am hopeful — cautiously hopeful, but hopeful — that we can achieve the goal that all four of these leaders articulated,” Obama said before dinner.

Video: Netanyahu: I didn’t come to make excuses

Video: Abbas: We recognize challenges ahead

Video: Key players in Mideast peace talks

Video: Politics of water in the Middle East

Clinton and Middle East Quartet Representative Tony Blair also attended the dinner. The Quartet consists of the United States, Russia, the United Nations and the European Union.

Netanyahu and Abbas reiterated their goal to come up with a solution and condemned attacks against the Israelis in recent days.

“We don’t seek a brief interlude between two wars, we don’t seek a temporary respite between outbursts of terror,” Netanyahu said. “We seek a peace that will end the conflict between us once and for all… for our generation, our children’s generation and the next.”

Abbas said it was time to end the bloodshed from Israelis and Palestinians.

“We want peace between the two countries … let us sign a formal agreement for peace and put an end to this long period of suffering forever,” he said.

As the talks begin, other issues loom. One immediate threat is the September 26 expiration of Israel’s 10-month freeze on settlement construction in the West Bank.

Another roadblock is the Palestinian view that any two-state solution must include a handover of all the land Israel captured in the 1967 war, along with East Jerusalem as the Palestinian capital.

While Netanyahu has expressed openness about a Palestinian state, he also has strong opposition to a Palestinian takeover of East Jerusalem.

Hamas’ control of Gaza also remains a “major problem,” Chief Palestinian negotiator Saeb Erakat said.

While Gaza is generally considered to be part of any future Palestinian state, Hamas has refused to recognize Israel’s right to exist and is not a part of the talks.

Leaders of Hamas are frequently in conflict with the more moderate Abbas and his Fatah organization, which has the upper hand in the West Bank.

With the U.S. war in Iraq drawing to a close, the Middle East has moved front and center for administration officials.

In earlier remarks from the White House Rose Garden, Obama said that “this moment of opportunity may not soon come again.” However, he also pointed to challenges ahead.

“We are under no illusions,” he said. “Passions run deep … there’s a reason that the two-state solution has eluded previous generations — this is extraordinarily complex and extraordinarily difficult.”

Several top officials close to the negotiations told CNN that it is hard to be optimistic about a peace deal at the moment. They downplayed expectations, saying that nobody directly involved in the talks expects a deal to be reached this week. But simply resuming talks was a critical step, and a comprehensive Middle East peace deal has been one of Obama’s top foreign policy goals, they said.

CNN’s Ed Henry, Alan Silverleib, Hala Gorani and David Molko contributed to this report

Mideast leaders call for end to violence

Clinton to announce direct Mideast talks to resume

Washington (CNN) — Leaders of Israel and the Palestinian Authority will meet in Washington in September to resume direct talks to address core issues in their long-running dispute, Secretary of State Hillary Clinton said Friday.

They are to meet in Washington in September, she said.

President Obama’s special envoy for Middle East peace talks, former Sen. George Mitchell, joined Clinton at a briefing at 11 a.m.

The peace talks will be the first since December 2008, when negotiations broke down over Israel’s three-week offensive in Gaza.

Obama has also invited Jordan, Egypt and members of the International Quartet — the United States, Russia, the United Nations and the European Union — to the table, diplomatic sources said.

The parties have agreed to complete the talks within a year, the sources said.

A senior diplomatic official said that U.S. engagement had led to a lot of traction in the last few months and that talks were urged before a moratorium on Jewish settlements ends and the U.N. General Assembly adjourns.

Oscar Fernandez-Taranco, U.N. assistant secretary-general for political affairs, called on Israel this week to continue the moratorium on all settlement activity — including in East Jerusalem — beyond September 26, when it is set to end.

“We are nearing a turning point in the efforts to promote direct negotiations between Israel and the Palestinians,” Fernandez-Taranco told the Security Council.

At a news briefing Thursday, State Department spokesman P.J. Crowley said that details on restarting the talks were still being worked out.

“We think we’re very, very close,” he said.

“Should the parties come to an agreement to enter into direct negotiations? How will they — when will they happen? Where will they happen? What will be the agenda for the first meeting?” he said. “There are still things that we’re working through.”

Saeb Erakat, chief Palestinian negotiator, said the Palestine Liberation Organization’s executive committee will meet about the issue Friday night.

CNN’s Kareem Khadder contributed to this report.

Clinton to announce direct Mideast talks to resume

U.S., Russia swap spies at Vienna airport

Moscow, Russia (CNN) — The United States and Russia completed a spy swap Friday, exchanging the agents on chartered planes at an airport in Vienna, Austria, a U.S. official and Russian media said.

The plane carrying 10 Russian agents, who were expelled from the United States on Thursday for intelligence gathering, landed at Moscow’s Domodedovo Airport on Friday afternoon, the airport press office said.

A separate plane believed to be carrying four people convicted of spying for the United States was scheduled to land at Washington’s Dulles International Airport shortly before 5:30 p.m.

“The United States has successfully transferred 10 Russian agents to the Russian Federation and the Russian Federation has released four individuals who had been incarcerated in Russia,” Dean Boyd, a spokesman for the National Security Division at the U.S. Department of Justice, said in a statement released just as the plane landed in Moscow. “The exchange of these individuals … has been completed.”

The elaborately choreographed transfer — which took place while the planes sat on the ground for about an hour — was reminiscent of a scene from the Cold War.

The 10 pleaded guilty in the United States on Thursday for failing to register as foreign agents and were ordered out of the country. They then boarded a U.S.-chartered flight accompanied by U.S. marshals, a federal law enforcement source said.

Video: Spy swap between U.S., Russia

Video: Russian spies: Deal or no deal?

Video: Accused spy responds to photos

“As a result of the successful exchange … the U.S. Attorney’s Office for the Southern District of New York has requested that the court dismiss any remaining charges against the 10 Russian agents,” U.S. Attorney Preet Bharara said Friday.

In Washington, Attorney General Eric Holder said none of the 10 had passed classified information and therefore none was charged with espionage.

“They were acting as agents to a foreign power,” he told CBS News, referring to the Russians who, U.S. officials have said, had been under observation by federal authorities for more than a decade.

Four young children of the Russian agents are now in Russia, according to attorneys for the agents. Two older children are no longer in the United States, though their exact location is unknown. Another two older children have remained in America, the attorneys indicated.

White House Chief of Staff Rahm Emanuel told PBS’ “NewsHour” that although the 10 agents didn’t plead guilty to being spies, they “were clearly caught in the business of spying.”

In a conference call with reporters, senior administration officials said the agents agreed never to return to the United States without permission from the U.S. government.

Holding them would have conferred no security benefit to the nation, they said.

This “clearly serves the interests of the United States,” one official said.

A second official said the four prisoners in Russia were in failing health, a consideration that prompted quick completion of the deal.

Under the plea agreements, the defendants disclosed their true identities in court and forfeited assets attributable to the criminal offenses, the Justice Department said in a news release.

“Defendants Vicky Pelaez, Anna Chapman and Mikhail Semenko, who operated in the United States under their true names, admitted that they are agents of the Russian Federation; and Chapman and Semenko admitted they are Russian citizens,” the Justice Department said.

Carlos Moreno, an attorney for Pelaez, said his client does not want to take up residence in Russia and would prefer ultimately to live in her native Peru or in Brazil, where she has family. Pelaez hopes to continue her work as a journalist, according to Moreno.

Pelaez told the court that Moscow promised her free housing in Russia and a $2,000 monthly stipend for life, as well as visas for her children to travel to see her. Pelaez and her husband, both naturalized American citizens, were stripped of that citizenship as a part of the plea deal.

Authorities have lost track of an 11th suspect, who was detained in Cyprus, released on bail, and then failed to check in with authorities as he had promised to do.

In Moscow, Russian President Dmitry Medvedev signed a decree Friday pardoning the four individuals imprisoned for alleged contact with Western intelligence agencies, the Kremlin press service said, according to state-run RIA Novosti.

Though the four Russians were released to the custody of the United States, that does not necessarily mean they would go to America, an embassy spokesman said.

“Three of the Russian prisoners were convicted of treason in the form of espionage on behalf of a foreign power and are serving lengthy prison terms,” the Justice Department said in a letter to U.S. District Judge Kimba M. Wood, who handled the case in the United States. “The Russian prisoners have all served a number of years in prison and some are in poor health. The Russian government has agreed to release the Russian prisoners and their family members for resettlement.”

It added, “Some of the Russian prisoners worked for the Russian military, and/or for various Russian intelligence agencies. Three of the Russian prisoners have been accused by Russia of contacting Western intelligence agencies while they were working for the Russian (or Soviet) government.”

The individuals pardoned by Russia are Alexander Zaporozhsky, Gennady Vasilenko, Sergei Skripal, and Igor Sutyagin.

All four appealed to the Russian president to free them after admitting their crimes against the Russian state, press secretary Natalia Timakova said.

But in Washington, State Department spokesman Mark Toner denied Thursday that Sutyagin had been a spy.

The Russian Ministry of Foreign Affairs said the move was made “in the general context of improving Russian-American relations, and the new dynamic they have been given, in the spirit of basic agreements at the highest level between Moscow and Washington on the strategic character of Russian-American partnership.”

CNN’s Dugald McConnell contributed to this report

U.S., Russia swap spies at Vienna airport

Northern Fleet submarines to search for hijacked cargo ship?

Russia has sent two nuclear powered submarines to search for “Arctic Sea”, a cargo vessel that is thought to have been hijacked by pirates or gangsters.

Russia’s president Dmitry Medvedev today ordered the Armed Forces to search for the Maltese-flagged and Russian crewed “Arctic Sea”, which disappeared two weeks ago after it reported being attacked by armed intruders near the Swedish coast, ITAR-TASS reports.

- All Russian navy ships in the Atlantic have been sent to join the search for the vessel, said Admiral Vladimir Vysotsky, the Russian Navy commander. Warships and two nuclear powered submarines are on their way to the Atlantic Ocean.

An expert from the Russian Center for Analysis of Strategies and Technologies (CAST) tells Radio Finam that the two submarines probably are Akula-class subs from the Northern Fleet. This is the same type of submarines that American media last week reported were patrolling the waters outside USA, as BarentsObserver wrote.

The expert from CAST adds that he finds it strange that submarines are scrambled to carry out a search in the Atlantic Ocean: – Aircrafts are better to use if you want to search for a ship. It is possible that they are sending the submarines out on another mission and just using the search as an excuse, he says to Radio Finam.

The cargo ship “Arctic Sea” has a Russian crew of 15 and carries a timber cargo worth over one million USD.