Israel set to hand over control of Bethlehem

JERUSALEM - Israel was preparing to hand over control of the West Bank city of Bethlehem to Palestinian security forces today, a key step in a United States-backed peace plan, after the two sides' leaders met in Jerusalem.

Israeli Prime Minister Ariel Sharon and Palestinian Prime Minister Mahmoud Abbas made a joint commitment to end almost three years of conflict yesterday and then held talks on further steps towards peace that both sides said were positive.

Sharon and Abbas agreed to set up four committees to work on implementing the "roadmap", a plan that points the way to the establishment of a Palestinian state in 2005.

"I would characterise the whole meeting as getting down to business with a positive approach, looking forward rather than dwelling on the past," said Sharon spokesman Ra'anan Gissin.

A Palestinian official quoted Abbas as telling Sharon.: "We can do this together and the conditions now are promising to make further progress."

Palestinian Information Minister Nabil Amr said Sharon and Abbas would meet again next week.

The Palestinians asked for a prisoner release and freedom of movement for their President, Yasser Arafat. Sharon said a list of prisoners to be freed would be presented at the next meeting but rejected the Arafat request, an Israeli official said.

Instead, Sharon said he would consider allowing Arafat to move from his half-destroyed headquarters in Ramallah to Gaza.

Palestinian minister Yasser Abed Rabbo said such an offer "was merely substituting one prison for another prison".

Earlier, Israeli and Palestinian military commanders met to discuss the handover in Bethlehem that Israeli Defence Minister Shaul Mofaz said would take place today.

The transfer of power there follows an Israeli pullback from much of the Gaza Strip that restored free movement for Palestinians for the first time in 2 1/2 years.

Bethlehem Mayor Hanna Nasser, who has watched Israel hand back responsibility for the West Bank city before then return after a spate of violence, said he hoped the handover would be more serious this time.

"I can do nothing except to be optimistic, because I see no alternative for the two peoples other than to live together," he told Israeli TV.

The Bethlehem pullout will leave Israeli troops stationed at the edge of the city near a Jewish shrine.

Today, US officials are expected to announce a US$30 million aid package for the Palestinians to help repair damaged roads and restore public services in the West Bank and the Gaza Strip.

- REUTERS