Foreign Minister Tzipi Livni and Palestinian negotiater Ahmed Qureia met Monday in Jerusalem to discuss core issues including Jerusalem, the settlements, the Palestinian refugees, borders, security and water resources. Knesset members sounded doubtful to the outcome of the talks and opted to paint a rather pessimistic picture of the situation.Meanwhile Prime Minister Ehud Olmert at the Foreign Affairs and Defense Committee chose to focus on Gaza and the Hizbullah. The Prime Minister said he opposed launching a widescale operation in Gaza, which he say may cost more than Israel is willing to pay. While Hizbullah has doubled its arsenal since the Second Lebanon War, it is doubtful that it will put it to use, said Olmert.01/14/08