The Palestinian President, Mr Yasser Arafat, is under great pressure from ministers, legislators and the general populace to pull out of fruitless talks with Israel begun two weeks ago. "But he does not want to be blamed for killing off the Oslo process," asserted Dr Ghassan Khatib, a leading West Bank analyst.
Israel's offer to release 100 to 120 Palestinian prisoners is seen as a ploy to divert attention from the main issue of implementing the territorial provisions of the Oslo and Hebron accords.
Ordinary Palestinians, who have abandoned hope of progress in the peace process, speak of their lives "before Oslo" and "after Oslo".
Before Oslo, Palestinians could travel throughout the occupied territories. They resisted the Israeli occupation through the Intifada and built their own separate economy. The West Bank and Gaza had a unified leadership. Palestinians who had jobs in Israel were allowed to work.
After Oslo, ordinary Palestinians found themselves sealed into tiny enclaves by Israeli "closures". Two-thirds of those formerly employed in Israel could not go to their jobs. Living standards plunged 30 per cent, 40 to 50 per cent of the labour force became unemployed.
Oslo has therefore become synonymous with humiliation, suffering and defeat. Palestinian popular support for the peace process - on which Mr Arafat has staked his future as leader of the Palestinian people - has fallen dramatically over the past year from over 60 to less than 40 per cent.
Although Hamas once offered an alternative to Mr Arafat, the Islamic resistance movement, which consistently opposed Oslo, has been rendered impotent. A source close to Hamas told The Irish Times that Mr Arafat "threatened the Hamas with civil war if it resumes suicide bombings in Israel".
However, Mr Arafat faces serious opposition from other quarters. Mr Marwan Barghouti, the West Bank secretary general of Fateh, the ruling party loyal to Mr Arafat, has told him that he cannot go on making concessions and expect the party to back him up.