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Reports that Prime Minister Ariel Sharon of Israel and President Mahmoud Abbas of the Palestinian Authority will declare at a summit meeting in Egypt their intention to suspend attacks after four years of conflict. Renewal of direct American involvement in the Israeli-Palestinian conflict by U.S. Secretary of State Condoleezza Rice; Intent of U.S. President George W. Bush to meet separately with both leaders; The growing momentum toward reviving a peace effort that was stalled until the death of Yasir Arafat, the Palestinian leader; Comments of Israeli and Palestinian officials; Observation that much will depend on the ability of Abbas to rein in the militant Palestinian factions and particularly Hamas; Israel's announcement of a pullback of its military forces from West Bank cities; Significance of these developments; Outlook.

Discusses how, under U.S. encouragement and pressure, Israel has taken steps to strengthen the standing of Palestinian moderates now that Palestinian leader Yasir Arafat has died. Prime Minister Ariel Sharon's possible removal of Israeli security forces from Palestinian population areas to facilitate Palestinian elections; Israel's concerns about a pullback; Perception of Arafat's death as an opportunity to revive the Israeli-Palestinian peace effort; Comments of U.S. President George W. Bush at a news conference with British Prime Minister Tony Blair; Call by Palestinian Prime Minister Ahmed Qurei for a resumption of peace efforts; Other gestures by Israel; How U.S. officials are raising questions about the extensive presence of Israeli troops; Credibility of Sharon's plan to pull out of Gaza; Outlook.