A plan for a return to peace talks drawn up by former Senator George J.Mitchell calls for confidence-building steps that include a freeze of Israeli settlement activity.

Ms. Rice agreed, saying confidence-building steps needed to be taken by both sides simultaneously.

In the meantime, Mr. Netanyahu reportedly intends to take immediate "confidence-building" steps such as loosening the ring of armor around the Palestinians.

Negotiating these issues will take time, but both sides can help the atmosphere with immediate confidence-building steps.

You have to have a series of confidence-building steps.

"We can say that economic development and cooperation can be confidence-building steps on the way to discussing a political settlement."

So Syria suggested that Syrian and Israeli representatives hold treaty talks in Washington to take advantage of the Syrian confidence-building step.

On Wednesday, Mr. Yon dismissed what he called "Western European-style confidence-building steps."

I want to be perfectly honest," Mr. Baker said, "the unwillingness of the parties to take confidence-building steps has been disappointing.

One official said Mr. Denktash was trying to outmaneuver the Greek side, which had worked out a series of confidence-building steps with the European Union.