Fayyad, Ayalon meeting ends abruptly ...

"... "We did not reach an agreement because the Palestinians did not agree to the terms of a two-state solution," Ayalon told Haaretz.
"Israel will continue to ease  restrictions imposed on Palestinians," Ayalon said, but stressed that this will only be done within the "confines of the security requirements. We will not gamble with the lives of our citizens."
Ayalon also rejected the Palestinian demand that Israel allow exports from Gaza, explaining that “Hamas continues to smuggle massive amounts of dangerous weapons.” Ayalon argued that any exports coming out of Gaza would have to pass through Israel, creating a real danger that Hamas will take advantage of the export commerce to reinforce its terror activity...."