Military

DATE=05/02/02

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL / PALESTINIANS (L-UPDATE)

NUMBER=2-289348

BYLINE=MEREDITH BUEL

DATELINE=JERUSALEM

CONTENT=

VOICE AT:

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INTRO: A triumphant Yasser Arafat has emerged from his West Bank headquarters hours after Israeli troops withdrew from the Palestinian leader's compound, releasing him from months of confinement. Correspondent Meredith Buel has details from Jerusalem.

TEXT: Greeted by a cheering crowd of hundreds of Palestinians, Chairman Yasser Arafat emerged in the sunlight and flashed a V-for-victory sign.

Aides steadied the Palestinian leader as he walked down a small flight of steps into a waiting limousine.

Mr. Arafat visited a local hospital and said prayers at a graveyard where Palestinians killed during the uprising against Israeli occupation are buried.

He also toured Palestinian Authority buildings in Ramallah, which have been severely damaged during the Israeli military incursion into the city.

Israel has restricted Mr. Arafat's movements for the past five months, and he has been confined to a few rooms in his headquarters since late March, when the military launched an offensive in the West Bank in response to Palestinian suicide attacks that killed dozens of Israelis.

The Palestinian leader was released from confinement under a U-S brokered deal that included the transfer of six wanted men in his compound to a prison in Jericho, where they are being monitored by American and British wardens.

Mr. Arafat says he is horrified by the damage caused during the recent Israeli offensive, and he denounced what he called the "barbaric activities" of the Israeli army.

The Palestinian leader also criticized the continuing Israeli siege around the Church of the Nativity in Bethlehem.

Early Thursday a gunfight and a fire broke out in Bethlehem, during which Israeli soldiers fired flares and smoke bombs.

Each side accuses the other of starting the clash.

For the past month Israeli soldiers have surrounded the basilica, where about 200 Palestinians, including gunmen, are hiding inside.

Israel is demanding the gunmen be put on trial in the Jewish state or go into exile. The Palestinians have proposed they be transferred to the Gaza Strip.

Also Thursday, Israeli tanks and troops rolled into the West Bank town of Tulkarem, declaring a curfew and arresting members of the Islamic militant group Hamas.

Israeli Prime Minister Ariel Sharon says Mr. Arafat is now free to travel overseas.

However, Mr. Sharon warned in an interview, if terrorist attacks against Israelis resume while Mr. Arafat is out of the Palestinian territories, he may not be allowed to return. (Signed)

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