Positive answers from Israel "will encourage us to go into direct talks," President Mahmud Abbas said Monday, describing the status of proximity discussions with Israel under US mediation.

Government-run news service WAFA said Abbas made the comment during ceremony opening a PA construction project in Ramallah. He said PLO officials had made their demands clear over borders and responded to Israeli concerns over security, and await the Israeli response from Middle East Peace envoy for the United States George Mitchell.

The envoy was in the region last weed when the current round came to a close, and will return in July to present final positions.

"We have not heard any Israeli position until now, but we hope to hear from them soon," Abbas said, according to WAFA.

The president indicated that he was pleased with the progress of talks so far, but took the opportunity of the news conference to highlight the progress of the Plan of the 13th Government, in state building ahead of the goal to create the infrastructure of an independent state by summer 2011.

In the West Bank, Abbas observed, the "economy is flourishing and we hope that this will soon be reflected in the futures of Gaza and Jerusalem where there are many projects that could be implemented."