Restrictions remain in Nablus, viewed as a militant stronghold
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Restrictions on the movement of Palestinians in most West Bank towns are being eased by the Israeli army.
The decision comes as plans were announced in Israel for concessions to revive the peace process once a new Palestinian government is in place.
The curbs are being eased everywhere except Jenin and Nablus - regarded by Israel as militant strongholds.
However, Palestinian officials have denounced the move as propaganda.
Chief Palestinian negotiator Saeb Erekat told the BBC it amounted to no more than "a public relations stunt".
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"The movement of private vehicles [between towns] will be
possible after the issuing of special authorisations"
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The Israeli decision follows meetings with Palestinian officials and moves by the Israeli authorities to allow in more Palestinian workers.
The much-resented restrictions on Palestinian movements were stepped up after last month's suicide attack on the northern Israeli port city of Haifa, which left about 20 people dead.
But the Israeli army chief of staff has been quoted since as suggesting the restrictions fuel militancy because they cause unnecessary hardship for Palestinian civilians.
Security co-operation
Israeli Foreign Minister Silvan Shalom said the government was ready to carry out steps quickly and smoothly in order to create the proper basis for peace talks.
A series of low-level talks with the Palestinians had been taking place for several days to prepare for the moment a Palestinian Government was formed, he said.
There have also been reports of increased security co-operation between the Palestinian Authority and Israel.
Palestinian Prime Minister Ahmed Qureia now plans to present his new cabinet to parliament for approval next week.
Originally, he had been expected to announce a more permanent replacement for his 30-day emergency cabinet on Tuesday.