With peace negotiations appearing to stumble, Kerry arrived in Israel yesterday on a new mission to bring the two sides together.
But only a few hours after his arrival, the Palestinians said they would refuse to continue participating in direct talks as long as Israel fails to halt settlement building.
In a dramatic, symbolic message, Kerry headed first for the Tel Aviv square where Rabin was assassinated 18 years ago to honour the memory of "a great man of peace".
Laying a wreath at a memorial in the square, Kerry recalled how just before he was shot, Rabin had been singing a song of peace with President Shimon Peres.
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"We are now 18 years since that moment and it is clear that we need voices ready to sing a song of peace, loudly, with courage, with the same determination prime minister Rabin showed with his quest for peace," Kerry said.
He was flanked by Rabin's daughter, Dalia Rabin-Pelossof, and grand-daughter, Noa Rothman, who was 18 when she lost her grandfather and whose poignant eulogy at his funeral won hearts around the world.
Kerry's words were clearly a message ahead of his talks Wednesday with Israeli Prime Minister Benjamin Netanyahu and Peres in Jerusalem, and Palestinian president Mahmud Abbas in Bethlehem.
But a senior Palestinian official, who asked to remain anonymous, told AFP that the Palestinians would refuse to continue at the talks as long as Jewish settlement on the West Bank proliferates.