Foreign Minister Tzipi Livni said on Sunday that progress had been achieved in peace talks with the Palestinian Authority, and that Israel recognizes the need to establish a Palestinian state, on the condition that an independent Palestine does not sponsor terrorism. Speaking after a meeting on Sunday with the Quartet of Mideast peace negotiators at the Egyptian resort town of Sharm el-Sheik, Livni described the negotiations with the Palestinians as serious and intensive. 11/09/08