But a strong undercurrent was never settled: whether the Palestinians will declare statehood on May 4, 1999.

The Americans have refused to say what they will do or say if Mr. Arafat does declare statehood.

Mr. Arafat has said that he will declare Palestinian statehood if no agreement is reached by Sept. 13.

Mr. Arafat has asserted that he will declare statehood this year, with or without an accord.

Mr. Arafat has threatened to declare Palestinian statehood unilaterally if May 4 passes without a final settlement.

Mr. Arafat said Palestinians were still discussing whether to declare statehood on May 4.

Palestinian leaders decided today against declaring statehood next Tuesday, retreating from a pledge that the Israelis saw as a threat, and so defusing a volatile situation.

Israeli legal expert Ruth Lapidoth said the Palestinians have already unilaterally declared statehood, and they did not need to do it again.

He announced, "We solemnly declare statehood for Telangana on November 2, 2008."

Taiwan gains almost nothing from declaring statehood.