Israel has shown flexibility in offering the Palestinians much greater scope for interim self-rule.

The elections would choose local leaders who would then sit down with Israel and work out a plan for interim self-rule for the occupied territories.

Under that formula, interim self-rule comes first and only then, after a period of adjustment over several years, would there be negotiations over the territories' final status.

A home-grown Palestinian leadership has put forward a plan for an assembly to provide interim self-rule.

Talks would be held with the Palestinians on a five-year period of interim self-rule, which would then be followed by talks on the permanent status.

Israel proposed in May that Palestinians in the occupied territories hold elections to choose delegates to discuss interim self-rule with Israel.

The talks have been stalled over proposals to give interim self-rule to the 2 million Palestinians under Israeli occupation.

The delegates also felt that Mr. Arafat appeared too willing to grant new concessions concerning the five-year interim self-rule offered to the Palestinians by Israel.

According to the invitation, the talks between the Israeli and Palestinian-Jordanian delegations will initially be about interim self-rule for the Palestinians in the occupied territories.

With so little progress toward agreement on interim self-rule, talks on a full political settlement may not be held for years.