Israeli and Palestinian leaders opened a US-brokered summit Tuesday with a vague pledge to reach a peace deal by the end of next year. The joint statement does not set a binding time line. It also avoids a firm stance on the core final-status issues of Israeli settlements, borders, Jerusalem and Palestinian refugees. President Bush read the agreement in a morning ceremony.

President Bush: “In furtherance of the goal of two states, Israel and Palestine, living side by side in peace and security, we agree to immediately launch good-faith bilateral negotiations in order to conclude a peace treaty resolving all outstanding issues, including all core issues, without exception, as specified in previous agreements. We agree to engage in vigorous ongoing and continuous negotiations and shall make every effort to conclude an agreement before the end of 2008.”

The summit continues today with a White House meeting between Israeli Prime Minister Ehud Olmert and Palestinian President Mahmoud Abbas. Olmert has already announced he won’t discuss core issues until after the summit. But Palestinian negotiator Saab Erekat welcomed the first formal talks in nearly seven years.

Saab Erekat: “It’s not going to be an easy road. It’s going to be a long, difficult road. Issues of Jerusalem — borders, settlements, refugees, security — is what make Palestinians and Israelis breathe.”