Gulf News has a good answer. It turns out that they need Western investment. So why is Israel talking? Well, Olmert is in legal trouble again, so he might want to deflect attention from that. And doing something the liberals (his main enemies) might like is a good start. But I probably shouldn't be so cynical. Olmert sees an opportunity. The Syrians know they would be better off distancing themselves from Iran and Hezbollah. And they want to become closer to the West and the Arab world for financial reasons. Israel would like to encourage that transition. But if they bomb Syria, they'll prevent that transition. If they talk, they'll encourage it. So they're talking, even though they would probably prefer bombing. I'm still somewhat skeptical about the negotiations, but both sides seem to be operating in a rational fashion, so there's hope. In the end, peace is the only rational option. Maybe the two sides will get there.
Update: Gershom says that elections might be coming. You'll need to click his link to get to the full article. I link to him because his intro is great. Money quote:
"Here we have an election whenever the humidity, the soccer results, the stock market and the mood in the State Prosecutor’s Office line up in a formula known only to several deceased alchemists."
Now that's Jewish humor.
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