Moussa wants dialogue with Iran UN chief for proximity talks SIRTE – Arab leaders opened a summit Saturday determined to send a clear warning that the Mideast peace process is doomed unless Israel freezes Jewish settlements in annexed East Jerusalem. Arab states should prepare for the possibility that the Palestinian-Israeli peace process may be a total failure and prepare alternatives, Arab League Secretary-General Amr Moussa said. He did not specify what the alternatives might be, but one possibility is a revival of an initiative first proposed eight years ago under which Arab states would normalize ties with the Jewish state in exchange for Israeli concessions on territory. Qatari Emir Sheikh Hamad Bin Khalifa Al-Thani, who hosted last year's summit in Doha, addressed the opening session before handing over the presidency to Libyan leader Muammar Gaddafi. Speaking to leaders at the summit of the Arab League, Moussa said the peace process had reached a turning point and that it was time for Arab states to stand up to Israel. “We have to study the possibility that the peace process will be a complete failure,” Moussa said in his opening speech to the summit. “It's time to face Israel. We have to have alternative plans because the situation has reached a turning point,” he said. “The peace process has entered a new stage, perhaps the last stage. We have accepted the efforts of mediators. “We have accepted an open-ended peace process but that resulted in a loss of time and we did not achieve anything and allowed Israel to practice its policy for 20 years.” The alternative to the stalled peace process which is favored by many states in the region is the Arab Peace Initiative, first proposed by Saudi Arabia at an Arab League summit in Beirut in 2002. Under that initiative, Arab countries would normalize relations with Israel in return for a complete Israeli withdrawal from occupied territories and a fair settlement for Palestinian refugees. Arab leaders are expected to ratify an agreement drafted by their foreign ministers to raise $500 million in aid to improve living conditions for Palestinians in Occupied Jerusalem as part of a “rescue” plan for the Holy City. Palestinian President Mahmoud Abbas ruled out US-brokered peace talks with Israel unless the Jewish state backs down on settlements and pleaded with Arab leaders to “rescue” Jerusalem. “We cannot resume indirect negotiations as long as Israel maintains its settlement policy and the status quo,” Abbas said. practice its policy for 20 years.” The alternative to the stalled peace process which is favored by many states in the region is the Arab Peace Initiative, first proposed by Saudi Arabia at an Arab League summit in Beirut in 2002. Under that initiative, Arab countries would normalize relations with Israel in return for a complete Israeli withdrawal from occupied territories and a fair settlement for Palestinian refugees. Arab leaders are expected to ratify an agreement drafted by their foreign ministers to raise $500 million in aid to improve living conditions for Palestinians in Occupied Jerusalem as part of a “rescue” plan for the Holy City. Thirteen leaders from the 22-member AL responded to Gaddafi's invitation and Libya hopes the summit will dispel lingering inter-Arab feuds and chronic disputes. Speaking on the occasion Palestinian President Mahmoud Abbas said that Palestinians would not sign any peace agreement with Israel without the Jewish state ending its “occupation” of East Jerusalem. UN chief for proximity talks Moussa set the tone by insisting that Israel scrap the new settlement plans before indirect talks with the Palestinians can start. “Indirect Palestinian-Israeli peace talks depend on freezing settlements and especially on cancelling plans by Israel to build 1,600 settlements in (east) Jerusalem,” he said. The summit is expected to adopt a resolution on the terms for a resumption of peace talks, Moussa said. UN chief Ban Ki-moon, who is also attending the meeting in Sirte, urged Arab leaders to support US-led efforts to facilitate indirect talks between Israel and the Palestinians. “My message to you is that, whatever our concerns, there is no alternative to negotiations for a two-state solution,” Ban said. “I urge you to support efforts to start proximity talks and direct negotiations. Our common goal should be to resolve all final status issues within 24 months,” the UN secretary general said. Dialogue with Tehran He also said the Arab League should open a dialogue with Tehran to address concerns, especially among Iran's neighbors across the Gulf, about its nuclear program. Moussa acknowledged member states had differences with Tehran, but said they had common interests too. “We have to open a dialogue with Iran. I know there is a worry among Arabs regarding Iran but this situation confirms the necessity of a dialogue with Iran,” he said. Moussa also proposed creating a regional grouping that would bring together Arab states and Turkey. Ankara has traditionally had close ties to Israel but relations have soured in the past few months. Turkish Prime Minister Tayyip Erdogan was a guest of Gaddafi at the summit. Gaddafi, who is taking over the Arab League's rotating presidency, called for a strong collective action in standing up to Israel.