Signs of progress at Mid-East talks

Palestinian children demonstrate in Manger Square, Bethlehem

Israeli and Palestinian negotiators in Washington are reported to be edging towards a possible agreement on President Clinton's last-ditch proposals for a Middle East peace deal.

Palestinian negotiator Yasser Abed Rabbo said his side was making headway on the thorny issue of the future of Jerusalem, while Israeli Foreign Ministry spokesman Moshe Debby described a "changed Palestinian stance".

We are close to achieving recognition of Palestinian sovereignty over Arab East Jerusalem

Palestinian negotiator Yasser Abed Rabbo

Diplomatic sources say Israel substantially improved its offer on the extent of an Israeli withdrawal from the West Bank and on Palestinian sovereignty over East Jerusalem.

The issues were the two main stumbling blocks at last July's abortive Camp David summit.

"We are close to achieving recognition of Palestinian sovereignty over Arab East Jerusalem, including the holy sites," said Mr Abed Rabbo.

US Secretary of State Madeleine Albright plans to join the negotiators at Bolling Air Force Base near Washington for a fourth day of talks on Friday.

Back in the region, Israeli police have stepped up security and placed strict limits on the number of people allowed to attend Friday prayers in Jerusalem following calls by Palestinian factions for protests on what is Jerusalem Day - the last Friday of the Muslim holy month of Ramadan.

Deal possible

Mr Abed Rabbo said much remained to be worked out, but a deal could conceivably be reached as early as Saturday.

Madeleine Albright briefed journalists on Thursday

The Israeli Government, whose electoral hopes depend largely on success in the negotiations, were also positive about the talks.

"We are having very fruitful negotiations in a new and positive spirit with our Palestinian partners," said Israeli Foreign Minister Shlomo Ben-Ami.

"President Clinton presented us with the parameters of an accord - that is to say, a possible margin of manoeuvre on the different unsettled issues, " he told Israel Radio.

White House spokesman Jake Siewart emphasised that a solution lay with the parties themselves: "It's up to them to make the hard decisions."

On Thursday, President Clinton had a telephone conversation with Egyptian President Hosni Mubarak to brief him on the discussions in Washington.

Killings

Despite the signs of progress, violence continued in the occupied territories on Thursday.

Soldiers captured a man who drove a truck at their checkpoint

An Israeli motorist was killed in a drive-by shooting in the West Bank, after two Palestinians died in clashes in the West Bank and Gaza.

Two more Palestinians were killed, and thousands marched in funeral processions for four Palestinians, including a 12-year-old boy, who died in violence the day before.

An 18-year-old Palestinian was also hit by gunfire from an Israeli tank near the Karni crossing between Israel and the Gaza Strip.

Near the West Bank town of Ramallah, four Israeli soldiers were injured when a Palestinian drove a truck at them near a military checkpoint.

Soldiers shot at the truck and captured the driver, who suffered wounds to the hand, arm and leg.

At least 339 people, mostly Palestinians, have now died as a result of the violence which broke out at the end of September.

In less than three months, the death toll has surpassed the 331 killed during the first 12 months of the 1987-1993 Palestinian uprising.