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DATE=10/11/2000

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL / PALESTINIANS (L)

NUMBER=2-267766

BYLINE=MEREDITH BUEL

DATELINE=JERUSALEM

CONTENT=

VOICE AT:

INTRO: U-N Secretary General Kofi Annan is continuing his shuttle diplomacy between Israeli and Palestinian leaders in an effort to end two-weeks of violence that has left more than 90-people dead, mostly Palestinians. As Correspondent Meredith Buel reports from Jerusalem, Mr. Annan has extended his stay for 24-hours.

TEXT: U-N Secretary General Kofi Annan is continuing to meet separately with Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat in an attempt to end the clashes between Israeli soldiers and Palestinian protesters.

Mr. Annan shuttled between Jerusalem and Gaza City trying to convince both leaders to agree to the conditions of an investigation into the violence that could serve as a starting point for resuming dialogue.

The Palestinians are demanding an international inquiry, while the Israelis want a fact-finding probe that is led by the United States.

Mr. Annan is also working to secure the release of three Israeli soldiers captured last week by Lebanon's Hezbollah guerrillas.

Hezbollah's capture of the soldiers is the most serious confrontation along Israel's northern border since Israel pulled its troops out of Lebanon last May, after more than 20-years of occupation.

The U-N Secretary General was to travel to Beirut, but has decided to extend his stay in Israel and the Palestinian territories until Thursday.

British Foreign Minister Robin Cook is also meeting with Israeli and Palestinian leaders.

While the level of violence has gone down, clashes continued in the West Bank where Israeli soldiers shot and killed a Palestinian teenager. Another Palestinian was killed by gunfire in the Gaza Strip.

Israeli troops fired machine guns mounted on tanks toward gunmen in a Palestinian village in the West Bank. The violence erupted as the funeral convoy of an American-born Jewish settler passed the area.

The clashes were sparked when Israeli opposition leader Ariel Sharon visited a holy site in Jerusalem's Old City that is sacred to Muslims and Jews. (SIGNED)

NEB/MB/GE/RAE