T I diplomacy A Mideast diplomatic activity resumes, but can any magic formula be found? MITCHELL DANOW Jewish Telegraphic Agency New York City • iddle East diplomacy shifted to New York this week amid wide- spread skepticism that there is any formula that can convince Israel and the Palestinians to make even slight progress toward peace. Helping fuel the skepticism was a Palestinian terror attack on Tuesday that claimed the lives of at least eight -Israelis. In an attack similar to one carried out last December, Palestinian ter- rorists set off a bomb as a bus neared the entrance to the West Bank settlement of Immanuel and then opened fire as people fled the bus. The attack came hours before offi- cials from the so-called Quartet — the United States, Russia, the European Union and the United Nations — met in New York in an effort to devise a strategy that would help Israel and the Palestinians overcome their seemingly intractable differences. The State Department entered Tuesday's meetings seeking a dialogue with its diplomatic partners to deter- mine clear criteria for Palestinian reform. The United States has not drafted such criteria, a State Department offi- cial said, but the goal is to announce them by late August. State Department officials were also seeking "centralized, transparent, accountable Palestinian institutions" and "reciprocal steps by Israel" as the Palestinians move forward with reform. The main point of contention between the United States and its international partners is the status of Palestinian Authority leader Yasser Arafat. The United States has made it clear that they want Arafat out of power — or at least away from the day-to-day responsibilities of running the Palestinian Authority. The Europeans, Russians and U.N. leaders say Arafat is the democratically elected leader of the Palestinian people and therefore should be involved in the reform process. Indeed, U.N. Secretary- General Kofi Annan told reporters after the first round of meetings on Tuesday: "As for Arafat, we all have our respective positions. The U.N. still recognizes Chairman Arafat and we will continue to deal with him until the Palestinians decide other- wise. Annan's comments on Arafat were echoed by Russian Foreign Minister Igor Ivanov and Foreign Minister Per Stig Moller of Denmark, whose country is currently heading the European Union. Much of what emerges from this week's meetings in New York with the Quartet and with Arab leaders from Egypt, Saudi Arabia and Jordan will be used by a newly created interna- tional task force. The task force, involving the Quartet plus Japan, Norway, the World Bank and International Monetary Fund, will seek to imple- ment financial reforms within the Palestinian government. But questions have been raised as to whether Quartet officials will be able to reach agreement among themselves on how to go forward — to say noth- ANAL TES An Israeli soldier carries a stretcher onto a bullet-riddled bus at the entrance to the West Bank settlement of Immanuel on Tuesday. Palestinians dressed as Israeli soldiers detonated a roadside bomb near the bus and then sprayed the passengers with gunfire as they tried to flee. At least eight people were killed and at least 16 were wounded. 7/19 2002 24