A new wave of violence could break out in the Middle East unless a peace agreement is reached at talks in London today, diplomats said. The Palestinians are said to be losing hope that Israel will make any further concessions and are prepared to fight for land on the West Bank. Palestinian officials say their move would be in line with the Oslo peace pact under which a final agreement was to have been reached by May 1999. British and US officials admit Israeli Prime Minister Benjamin Netanyahu has shown no signs he is prepared to make any concessions at today's talks and the Palestinians are unlikely to concede any further ground. Palestinian Authority President Yasser Arafat is hoping British Prime Minister Tony Blair can bring the healing touch that appears to have led to a peace agreement in Northern Ireland to the Middle East conflict. 'I hope this will be a decisive meeting but I'm sorry to say Mr Netanyahu is trying to escape implementation of the peace process. His policy is to try to gain time,' Mr Arafat said. United States Vice-President Al Gore held talks with Egyptian President Hosni Mubarak in Cairo yesterday after urging Israelis and Palestinians not to miss a chance for peace. He met Mr Arafat in the West Bank on Saturday night and then spent two hours with Mr Netanyahu at Tel Aviv airport. Last night, Israeli diplomats were not optimistic the talks would produce any progress and refused to speculate on the outcome, but the Palestinian delegation insisted it was prepared to work for an agreement. 'What we are working for is a breakthrough, not a breakdown. We are really hoping we can make some agreement,' a Palestinian spokesman said. Mr Blair is to meet Mr Arafat this morning and Mr Netanyahu in the afternoon. They will hold separate meetings with US Secretary of State Madeleine Albright. But British officials fear there could be little progress in the talks and that the US has only agreed to British involvement so it can share the blame if a breakdown leads to further violence.