The Palestinian president has left the door open to continuing peace negotiations with Israel even if it resumes settlement construction in the West Bank, offering a glimmer of hope that a compromise will be reached in a key dispute that has threatened to torpedo the newly relaunched talks. Palestinian President Mahmoud Abbas has repeatedly threatened to walk away from peace talks, launched this month in Washington, if Israel resumes building in its West Bank settlements after a 10-month moratorium expires on Sunday. Israeli Prime Minister Benjamin Netanyahu has said he will not extend the slowdown, which has put thousands of planned housing starts on hold. Israel has also quietly halted new construction in Occupied East Jerusalem, the disputed sector of the city that the Palestinians claim for their future capital. Speaking to a closed meeting of Jewish American leaders in New York late Tuesday, Abbas made clear that he wants to continue the dialogue with Israel and signaled that he was backing away from his ultimatum. “I cannot say I will leave the negotiations, but it's very difficult for me to resume talks if Prime Minister Netanyahu declares that he will continue his activity in the West Bank and Jerusalem,” Abbas said, according to a transcript of the event obtained exclusively by the AP. Abbas urged Israel to extend the building restrictions for several months while the sides negotiate the final borders between Israel and a future Palestine. “At that time, Israelis will be free to build in their territory and the Palestinians the same,” he said. Israel has reacted coolly to that suggestion. Some 50 leaders of Jewish American organizations as well as former diplomats and policymakers attended Tuesday night's meeting with Abbas, who is in New York for the General Assembly of the United Nations. The two-hour gathering was sponsored by the S. Daniel Abraham Center for Middle East Peace.