Israel is preparing to hand over control of the West Bank city of Bethlehem to Palestinian security forces, a key step in a US-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.
Mr Sharon and Mr Abbas agreed to set up four committees to work on implementing the 'road map', a plan that points the way to the establishment of a Palestinian state in 2005.
"I would characterize the whole meeting as getting down to business with a positive approach, looking forward rather than dwelling on the past," said Mr Sharon's spokesman, Mr Ra'anan Gissin.
"We can do this together and the conditions now are promising to make further progress," a Palestinian official quoted Mr Abbas as telling Mr Sharon. Palestinian Information Minister Nabil Amr said the two leaders will meet again next week.
Earlier, Israeli and Palestinian military commanders met to discuss the handover in Bethlehem, set to 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 two-and-a-half years.
The road map requires Palestinian police to fill security vacuums wherever Israeli troops and tanks pull out, and Palestinian commanders promised to prevent attacks against Israel from Bethlehem.
In another positive signal for the peace plan, a poll of Palestinians in the West Bank and Gaza Strip found that an overwhelming 80 per cent support an unlimited truce with Israel.
On Sunday, leading Palestinian militants declared a temporary halt to attacks on Israelis, but the truce was quickly challenged by two West Bank attacks in which two people were killed.