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JERUSALEM (AFP) — Palestinian president Mahmud Abbas met his Israeli counterpart Shimon Peres on Tuesday at Peres's official residence in Jerusalem to review developments in the peace process between the two sides.

In a first for Abbas, the largely ceremonial Israeli president greeted him with a red carpet and Palestinian flags flying.

In the past, Abbas has been received either at the offices of the Israeli cabinet or the official residence of Prime Minister Ehud Olmert.

After the meeting, Peres told journalists: "We discussed the peace efforts. We hope to reach a true peace based on mutual understanding, culture and economic development; a peace that will permit both peoples to coexist peacefully in two states."

But Palestinian MP Ziad Abu Ziad played down the significance of the 20-minute encounter.

Aside from the fact that Peres has no policy-making role, Ziad said the "Israelis save meaningless honours and embraces for us, which do nothing to change the reality.

"We want progress in the peace negotiations, while on the ground the suffering, the roadblocks and the settlement continue."

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