With both Iraq and Bush's neocon strategy in tatters, Blair seems to have finally seen the light and realized that the only way to improve the situation is to get the focus back on Israeli/Palestinian negotiations:
Blair, was preparing a delicate but critical shift in his Iraq policy... to argue that "as the conflict has evolved, our strategy must evolve with it".
He will... insist, in words directed at the Bush administration, that no peace is likely across the Middle East without a solution to the Palestine-Israel crisis.
He will make this case more urgently in private via a video link tomorrow to the Iraqi Survey Group... The panel is seen in Washington as the route by which Mr Bush will shift his Iraq policy in response to the midterm elections defeat. No 10 sees this moment of flux in Washington as a critical time to influence US thinking.
 Well, this is certainly the right time to try to convince US policymakers to change course from giving Israel impunity to continue building more settlements and grabbing more land behind the undeclared border of its so-called security fence. Unfortunately, no Democrat since Jimmy Carter has been serious in trying to get Israel to relinquish the West Bank territory that it's been occupying since 1967 (that was in fact the essence of the land-for-peace deal of the first Camp David accord).
So I won't hold my breath while I'm waiting for rationalization US foreign policy. A pity. It would be so easy to do. Just convince the Israeli right-wing to give up the West Bank settlements in exchange for Palestinian abandonment of Jerusalem and the right of return of refugees.

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