UNITED NATIONS, Oct 15: United Nations Secretary General Kofi Annan is of the view that prospects for a two-state solution to the Israeli-Palestinian conflict had dwindled rather than grown over the last 12 months.

In a report to the General Assembly and the Security Council on the question of Palestine, Mr Annan said that while he was extremely disappointed with the events of the last 12 months, he had seen some encouraging gestures from both sides.

“In this regard, I have welcomed the continued commitment of [Palestinian] President (Mahmud) Abbas to a platform of peace, and I have noted with satisfaction [Israeli] Prime Minister (Ehud) Olmert’s stated readiness to engage a Palestinian partner,” he observed in the annual report.

“I am also pleased that opinion polls have continued to emphasise the desire of both the Israeli and Palestinian peoples for a negotiated two-state solution, even if confidence in the peace process is declining.”

“The peace process is supposed to follow the roadmap, which was set out by the diplomatic quartet and which originally called for Israelis and Palestinians to live side by side in two states by the end of 2005.”

Reiterating his pledge that the UN will help the two sides settle their dispute, Mr Annan said violence had aggravated across the region over the last one year.

He cited suicide bombings by Palestinians and their ‘indiscriminate’ rocket and mortar fire at Israel, as well as Israeli aerial strikes, extrajudicial killings of alleged militants, tank shelling and extensive ground operations.

There was also a surge in Palestinian infighting, Mr Annan observed.