Israel set to pull out of Bethlehem

Israel is today set to pull troops out of Bethlehem and parts of the Gaza Strip in what could be a breakthrough deal with Palestinian officials.

A four-hour meeting in Tel Aviv between Israeli defence minister Binyamin Ben-Eliezer and Palestinian interior minister Abdel Razak Yehiyeh agreed a plan that would see Palestinian security forces regain control over areas currently occupied by Israeli troops.

Aides to Palestinian leader Yasser Arafat said the withdrawal would " prepare the atmosphere" for troop pullbacks in other Palestinian areas. Both sides had agreed the withdrawal would be complete within 48 hours, he said.

Today's Israeli withdrawal would be the first time in months that talks between the two sides have been fruitful. There has been relative calm in the area for several days and there are hopes that today's withdrawal may kickstart the faltering peace process once again.

According to the plan, known as Gaza First, Israeli troops would leave areas where Palestinian forces would retake security control and work to prevent attacks on Israelis. But Israel rejected Palestinian demands to extend the scheme to several other towns in the West Bank.

Israel said it would pull out on condition "the Palestinian side takes responsibility for calming the security situation and reducing violence".

If the attacks stop in Gaza and other areas where the Israeli troops withdraw, the plan would be gradually extended throughout areas that are supposed to be under the control of the Palestinian Authority.

Israel controls seven of eight main Palestinian population centres in the West Bank, and holds large swathes of land in areas around Jewish settlements in the Gaza Strip.

The move comes as Palestinian attacks on Israeli targets decreased over the past week and is seen as a confidence-building measure. However, Israeli leader Ariel Sharon swore there would be no let up against "terrorist leaders".

Foreign minister Shimon Peres said Israel is "fighting terrorism and not the Palestinian people".

Israel has imposed curfews and sent troops into West Bank Palestinian towns to stop terrorist attacks on Israelis.

Israeli troops yesterday shot and wounded three Palestinians - including a 16-year-old girl - in the Gaza Strip, claiming it had responded when its forces were attacked with anti-tank missiles.