Israel considers extent of next West Bank pullout

How much to hand over?

It was unclear how much land Israel would agree to hand over in the first phase. But hawks on the prime minister's 18-member Cabinet are not feeling very generous.

Hard-liners, including former general Ariel Sharon -- now Israel's Minister of Infrastructure -- demand huge security strips cutting deeply into both sides of the West Bank.

Some Palestinians hopeful, others pessimistic

In the West Bank town of Halhoul, however, residents were optimistic. They prepared for the expected handover by painting over political slogans from the Intifada -- the 1987-1993 uprising against Israeli occupation.

"We are very happy because the Israelis are gone from here," says an elderly resident of the town. "This land (belonged) to Palestine and Arabs (for) 5,000 years."

When Israel controlled Halhoul, one Palestinian mother said, soldiers "used to force their way into our homes and smash our furniture. Then they would beat and arrest our children."

If Netanyahu's hard-liners yield only minimal territory, however, Palestinians fear they will never get a land of their own, and will remain locked up forever in their cities surrounded by Israeli soldiers, settlements and roads.

"It seems the peace agreement we signed with the Israeli government has been put in the refrigerator," says chief Palestinian negotiator Saeb Erakat.

"He's telling us these are the new terms ... for the peace process. Take it or leave it."

U.S. again criticizes Israel

Israel has handed over seven West Bank towns and most of an eighth to Palestinian self-rule since its landmark 1993 peace deal with the Palestine Liberation Organization. It has also given the Palestinian Authority responsibilities in some 450 villages.

But Washington is not completely pleased with Netanyahu's policies. On Wednesday, the U.S. criticized Israel's decision to close four Palestine Liberation Organization offices in East Jerusalem.

"It is ... very difficult to understand why the Israeli government made such a decision at this time when there is a very difficult environment in the relationship with the Palestinians," said State Department spokesman Nicholas Burns.

On Monday, President Clinton said Israel's decision to build new housing for Jews in Arab sections of Jerusalem does not build "trust."