LISBON, Portugal - President Clinton said Thursday that a historic Middle East peace agreement is within reach for Israel and the Palestinians but only if both sides agree ''to do things that they have not done in the past.''
He directed Secretary of State Madeleine Albright to the Mideast next week to try to bridge the gulf between the two sides.
''This is tough work,'' Clinton said. ''If it were easy, somebody would have done it a long time ago. But actually, it is within view now.''
Clinton, who hopes to win a place in history as a Mideast peacemaker, announced Albright's mission after meeting with Israeli Prime Minister Ehud Barak. Before their talks, Barak complained in unusually blunt terms that Palestinian negotiators were dragging their feet. Clinton said he will meet soon in Washington with Palestinian leader Yasser Arafat.
In Gaza Thursday, Arafat said it was Israel that was stalling the talks, not the Palestinians. ''They are the side that is wasting time and not moving toward peace,'' Arafat said.
Barak and Arafat face a Sept. 13 deadline for reaching a full accord on the divisive issues of Palestinian independence, including borders, the fate of Palestinian refugees and the future of Jewish settlements, as well as the status of Jerusalem. They failed to meet deadlines in February and May for framework agreements outlining an overall settlement.
''We are dealing with the most fateful issues there are between Israelis and the Palestinians,'' a senior administration official said.
Clinton praised Barak and Arafat for their courage and vision but said they would have to make hard concessions.
''They could do it and I believe they will do it,'' he said, ''and I'm going to do my best to help them do it.''
The senior official, speaking on condition of anonymity, said Clinton was hopeful because the two sides have come a long way. But the official acknowledged that in the seventh year of the peace process ''we don't necessarily have the kind of climate one would have envisioned.'' But he added that the negotiations at least show there might be a way to overcome the differences.
Albright will fly to the Mideast from Ukraine, the last stop on Clinton's weeklong European tour, which includes a summit in Moscow with Russian President Vladimir Putin. She will consult with Arafat and Barak, and then Arafat will visit Washington to see Clinton.
Syria was conspicuously missing from Albright's itinerary. Syria has refused to resume peace talks with Israel despite Clinton's direct intervention with President Hafez Assad.
Barak, who flew to Portugal to brief Clinton on Mideast negotiations, has said there is still a slight chance Israeli-Syrian talks could resume. In a nod to Assad, Barak said in Portugal that ''we respect the dignity of Syria and its sovereignty'' and that Israel is ready to negotiate on the principle of land for peace.
Despite Clinton's optimism and Albright's high-profile visit, the president said tough work remains.
''Both leaders know from me and they know from their own experience that they now have to be prepared to make an intense effort and to do things that they have not done in the past - with real courage and vision - if we're going to actually get a framework agreement that deals with the outstanding issues,'' the president said.
The U.S. administration envisions a Camp David-style summit among Clinton, Arafat and Barak to nail down details when a final agreement appears close. But the two sides are not close enough to schedule such a meeting, and Albright's trip is not intended to fix a date, the official said.
The official said Albright would have to make at least one more trip before Israel and the Palestinians are ready for a summit.
''We know on the one hand that in fact they have made some headway, they have narrowed some differences, but we also know that the differences that remain are very significant,'' the official said. ''More has to be done to create a kind of basis before you would go to the kind of (three-way) summit that the president has in mind.''
It's unclear how long it would take to get to that stage. To speed the peace process, the official said, Clinton agreed to Israel's request for $50 million in U.S. military aid to shore up Israel's border with Lebanon, following the withdrawal of Israeli troops from southern Lebanon. The decision was conveyed to Israel before Barak's meeting with Clinton.