Spain believes an agreement with Morocco over the disputed islet of Perejil can be reached soon, after intense diplomatic pressure from the United States galvanized negotiations between the neighboring countries. A government source said on Saturday that even though Spanish Foreign Minister Ana Palacio has not spoken directly with her Moroccan counterpart, the situation was near resolution after active telephone diplomacy on Friday night.

"Although there is no agreement, we are close to getting one after the latest contacts," the source said, declining to provide further details.

International efforts to broker a peace between them were spearheaded by Secretary of State Colin Powell, who has spoken to King Mohammed of Morocco twice and to the Spanish foreign minister four times in the last 24 hours.

"We expect to continue this discussion and we're hopeful we can come to closure," a U.S. official told Reuters.
Washington is seeking a solution which would restore the peaceful, unoccupied status quo as it was on July 10, before Moroccan troops landed on the island. That is also Spain's stated aim.

Madrid insists that the United States has acted as a facilitator rather than an intermediary, as it had publicly rejected any offers of mediation by a third party.

But Spanish media welcomed Powell's intervention as the situation had looked increasingly like moving toward deadlock.
"The role of the United States, along with discrete mediation from Brussels, has been crucial," left-leaning daily El Pais said in an editorial comment.

"Washington has dedicated itself totally to resolving this absurd dispute, as the last thing it wants is a conflict between two of its allies on this side of the Mediterranean when the east flank is erupting amid widespread tension between the Muslim world and the West in the wake of September 11," it said.

PHOTO CAPTION

Spanish soldiers unload supplies from a military helicopter on Perejil island Friday, July 19, 2002. (AP Photo/Ramon Espinosa)