RAMALLAH, West Bank — Secretary of State Condoleezza Rice assured Palestinian leaders today that a U.S.-sponsored Mideast peace conference this fall is meant to get them closer to establishing an independent state and that Israel is ready now to discuss fundamental issues.

Palestinian President Mahmoud Abbas, during a meeting with Rice, also signaled willingness to compromise, saying he's ready to work on a "declaration of principles" as a step toward a full peace deal.

Israeli Prime Minister Ehud Olmert floated such an idea last week, but Abbas hadn't commented until today.

Rice met with Abbas at his headquarters and signed an agreement granting the Palestinians $80 million for reform of their security services. She said she's likely to be back in the region before this fall's international conference, which is being promoted by the U.S. administration.

In a joint news conference with Abbas, Rice said President Bush wants to see progress toward Palestinian statehood at the conference.

GHAZNI, Afghanistan — South Korean and Afghan officials searched for a meeting place today after agreeing to hold face-to-face talks with the Taliban to seek the release of the remaining 21 South Korean captives, a chief negotiator said.A delegation of eight South Korean lawmakers, meanwhile, departed for Washington today to urge the United States to help negotiate the release of the hostages. Earlier South Korean diplomatic efforts have failed to bend Afghanistan's refusal to respond to Taliban demands for the release of militant prisoners.