An Israeli newspaper reported Friday that Syrian negotiators meeting with Israelis in a Washington suburb have shown a willingness to bend on some crucial issues concerning the Golan Heights, including the possibility of some joint commercial projects between the two countries. But TIME's Beirut bureau chief Lara Marlowe cautions this might be wishful thinking on the part of the Israeli press. "The Israelis would be happy with a 'warm peace,' one that allows the two countries to trade tourists and commerce," says Marlowe. "But the Syrians want a 'cold peace,' where the two countries would exist side-by-side, but wouldn't have much to do with one another. I am extremely skeptical about any joint venture agreement. Israeli newspapers are notorious for hyping both progress and setbacks in the peace talks." The daily newspaper, Maariv, also said the negotiators were discussing a Syrian committment not to divert water resources on the Golan after Israel withdraws. "This would really be shocking because the Syrians were very critical of the Palestinians for giving away water rights in the Oslo agreement," says Marlowe. The negotiations, still in their early stages, are scheduled to resume next Wednesday.