Clinton said that Israel was moving in the right direction in its offer to restrict but not stop the settlements, but that its offer "falls far short" of U.S. expectations.

Her earlier praise of Israel's offer had been intended as "positive reinforcement," she said. But it drew widespread criticism from Persian Gulf ministers who interpreted it as a softening of the U.S. position on settlements, which stand in the way of a resumption of Israeli-Palestinian peace talks.

In a sign of Washington's eagerness to calm Arab concerns about the U.S. position, Clinton's staff said she was extending her trip by one day to fly to Cairo to meet tomorrow with Egyptian President Hosni Mubarak. She had been due to return to Washington today.

Clinton's comments appeared to reflect a realization within the Obama administration that Israeli Prime Minister Benjamin Netanyahu's government will not accept a full-on settlement freeze and that a partial halt may be the best lesser option. Her appeal on Saturday seemed designed to make Israel's position more palatable to the Palestinians and Arab states.

"We have to work with what we've got," said one U.S. official, adding, "We need to press both sides not to miss this opportunity."

Clinton traveled to the region only reluctantly, concerned that her visit might be seen as a failure, according to several U.S. officials. She agreed to meet Israeli and Palestinian leaders after pressure from the White House, according to the officials, who spoke on condition of anonymity to discuss internal administration thinking.

A White House official said the earlier meetings on the Mideast in the United Arab Emirates were added because Clinton was already in the region for meetings in Pakistan and Morocco.

During a photo session yesterday with her Moroccan counterpart, Clinton was asked by a reporter about the Arab reaction. She responded by reading from a statement that appeared designed to counter the skepticism about the Obama administration's views on settlements.

"Successive American administrations of both parties have opposed Israel's settlement policy," she said. "That is absolutely a fact, and the Obama administration's position on settlements is clear, unequivocal, and it has not changed. As the president has said on many occasions, the United States does not accept the legitimacy of continued Israeli settlements."

Clinton's tweaking of her earlier remarks appeared to satisfy at least some at the Morocco meeting.

Palestinian Foreign Minister Riad Malki said, "We have heard her say something completely different from that statement in line with previous statements, so we are happy that such a position was highlighted and brought back to the right line."

In her recalibrated comments, Clinton also called on the Israelis to do more to improve "movement and access" for Palestinians. She added, however, that Israel deserved praise for moving in the right direction.

Clinton also stressed that the Palestinian authorities deserved credit for what she called "unprecedented" steps to improve security in the West Bank and praised the Palestinians for progress in training their security forces.