Military

DATE=11/07/03

TYPE=CORRESPONDENT REPORT

TITLE= ISRAEL PALESTINIANS L

NUMBER=2-309544

BYLINE= LARRY JAMES

DATELINE=JERUSALEM

CONTENT=

INTRO: Three Palestinians have been killed in two separate overnight clashes with Israeli troops in the Gaza Strip. V-O-A's Larry James reports from Jerusalem on the violence which comes as Israel prepares to further ease restrictions on Palestinian travel.

TEXT: Israel Radio says two Palestinians were shot and killed as they were laying explosives near the security barrier that runs near the town of Khan Yunis in the northern Gaza Strip. The shooting followed an incident in which Palestinians were reported to have fired five mortars at a cluster of nearby Jewish settlements.

A third Palestinian was reported to have been killed when Israeli troops exchanged fire with gunmen holed up in a house in the Gaza village of Al Musader.

The incidents come as Israel prepares a further relaxation of restrictions on Palestinian travel by opening the Ein Arik checkpoint near the West Bank town of Ramallah.

Israel announced on Wednesday that it had ended internal closures on all Palestinian cities in the West Bank with the exception of Nablus and Jenin.

The Israeli Army said these two cities should continue to be sealed off due to the large number of warnings that Palestinians are planning to use them to launch terror attacks.

Palestinians in all other cities are now able to travel outside their areas, providing they have a permit.

The restrictions were eased two months after Israeli forces encircled Palestinian self-rule areas in response to suicide bombings.

Israeli officials said the decision is aimed in part at boosting support for Palestinian Prime Minister Ahmed Qureia who is trying to build a new government and has stated his willingness to re-start peace talks.

Israeli Foreign Minister Silvan Shalom says that more goodwill gestures are needed to restore trust between the two sides and set the climate for a return to negotiations. Israeli Prime Minister Ariel Sharon has said he would hold talks with Mr. Qureia, but only when the Palestinian prime minister is ready for such discussions.

Israel's moves are also seen as an attempt to support Prime Minister Qureia, who is locked in a political struggle with President Yasser Arafat.

The dispute between the two men is delaying the formation of new Palestinian government. At issue is who is to control Palestinian security services.

NEB/LDJ/KBK