Sharon offers temporary truce to Hamas

Under the terms of the ceasefire, initially to last three days, Israel would stop all attempts to assassinate Palestinian militants in exchange for an agreement by the radical Hamas group to halt all attacks on Israel, including the firing of Qassam rockets, the source said.

Following the three-day period, the truce would be renewed on a daily basis while the two sides discuss plans for a comprehensive ceasefire, he said.

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The offer, delivered by Sharon's chief of staff Dov Weisglass to Palestinian finance minister Salam Fayad, was discussed late Friday at a meeting between Palestinian leader Yasser Arafat and his security chiefs, he added.

But he would not comment on the reaction of the security chiefs meeting in the West Bank town of Ramallah. The meeting is to be continued on Saturday, Palestinian sources said.

A senior adviser to Arafat earlier said the meeting was called to discuss an apparent US proposal for a ceasefire, amid heavy pressure from Washington for Israel and the Palestinians to return to the US-backed roadmap peace plan.

"It will continue in the morning to follow up on all the issues and to adopt measures and decisions that will serve the higher Palestinian cause," said Nabil Abu Rudeina.

Among those attending were Palestinian security chief Mohammed Dahlan, the head of national security in the West Bank and Gaza, General Abdul Razeq al-Majeda, head of public security in Gaza City, Saeb al-Aajez, and intelligence chief General Amin al-Hindi.

More than 60 people have been killed since a US-Israeli-Palestinian peace summit in Jordan on June 4, most of them in Israeli helicopter strikes targeting Hamas in Gaza and in a Hamas suicide bombing on a Jerusalem bus.

AP adds: Israel and the Palestinians are resuming security talks despite a week of bombings and missile strikes that have killed 60 people, officials said Saturday.

On the table is a proposal that Israel withdraw from parts of the Gaza Strip, to positions held before the outbreak of fighting in September 2000, officials on both sides said.

Israel also offered to halt military operations for three days to improve the atmosphere, a senior Palestinian official said.

Palestinian security chief Mohammed Dahlan and Israeli Defense Minister Shaul Mofaz were to meet later Saturday, said Raanan Gissin, an aide to Israeli Prime Minister Ariel Sharon.

It would be the first high-level meeting since President Bush launched the "road map" peace plan at a Middle East summit last week.

The Dahlan-Mofaz meeting coincides with the arrival of the first contingent of US monitors, who are to supervise implementation of the peace plan. The team of 10 to 15 CIA and State Department officials is headed by John Wolf, an assistant secretary of state.

Under the peace plan, Israel is to withdraw gradually from territory it reoccupied in the past 32 months of fighting, while the Palestinians are required to dismantle militias, including Hamas.

However, Hamas broke off truce talks with Palestinian Prime Minister Mahmoud Abbas last week, and violence has only escalated, with 36 Palestinians and 24 Israelis killed since the Middle East summit.

Israel carried out seven missile strikes against Hamas targets, including a failed attempt on the life of a Hamas leader, Abdel Aziz Rantisi. Hamas blew up a Jerusalem bus to avenge Rantisi, and carried out a number of other attacks.

Israel has also said it is widening its campaign against Hamas and will target top leaders, among them Hamas founder Sheik Ahmed Yassin, in addition to members of the military wing.

Despite the deterioration, behind-the-scenes contacts continued in recent days. The United States and Egypt stepped up mediation efforts, while Palestinian Finance Minister Salam Fayad talked by phone to Dov Weisglass, a senior Sharon aide.

Palestinian leaders and security officials met late Friday and again Saturday morning to discuss a proposed Israeli pullback, and said they are willing to take over areas from which Israel withdraws.