Israel Proposes; Palestinians Unresponsive

May 22, 2001 -- Israel's premier called for a cease-fire today, and its defense minister barred the army from initiating attacks against Palestinians as the officials reacted to the latest attempt to get peace talks back on track.

That attempt was the release Monday of the Mitchell report from an international panel chaired by former U.S. Sen. George Mitchell aimed at ending nearly eight months of Mideast violence. The report calls for confidence-building measures, a resumption of security cooperation, a freeze on Israeli settlements in Gaza and the West Bank, and peace negotiations after an immediate cessation of violence.

Prime Minister Ariel Sharon said the confidence-building measures could lead to a truce, but was evasive on the international commission's call for a permanent freeze on the construction of settlements.

"I propose to our neighbors to work together for an immediate cease-fire and hope the Palestinians will answer the call positively," Sharon told reporters. "Then we can begin carrying out the outlines of the Mitchell report."

In a statement, Israel's Ministry of Defense said it has "ordered the army to cease fire and to follow regulations for opening fire that are activated when lives are endangered."

It was unclear if the order meant soldiers would stop firing on stone-throwers or striking at Palestinians whom Israel suspects of directing attacks on Israelis.

Palestinians React Cooly

Palestinians were unreceptive to the Israeli positions. A senior Palestinian official pointed to the Mitchell report's recommendation of a freeze on settlement construction, and Sharon's equivocation on the issue, as a problem.

There are 163,000 Jews living in 122 settlements on the West Bank and 6,000 in 16 settlements in Gaza, according to Israeli government estimates. Much of Sharon's coalition government is staunchly opposed to stopping development.

Sharon said he believed a formula could be found that would satisfy the Palestinians, but also allow for the settlements to expand according to their current needs.

Sharon's comments came after U.S. Ambassador to Israel Martin Indyk and U.S. Consul-General Ron Schlicher met with Sharon in Jerusalem to discuss ways to implement the report, which had been greeted positively by Palestinians.

Palestinian leader Yasser Arafat welcomed the report and called for an international summit similar to the talks held in the Egyptian town of Sharm el-Sheikh in October, which called for a cease-fire that was never implemented.

U.S. Gets Involved Again

Meetings around the Mitchell report mark a renewal of a U.S. role in Middle East peace initiatives, heralded by U.S. Secretary of State Colin Powell's endorsement on Monday and his appointment of a "special assistant," U.S. Ambassador to Jordan William Burns, to help shepherd the peace process.

The diplomatic maneuverings, however, failed to produce a letup in the violence today as a six-hour gun battle flared in the West Bank town of Beit Jala and clashes continued in the Palestinian-controlled territories.

Israel soldiers also shot a 13-year-old Palestinian youth during a stone-throwing clash at the Rafah border crossing between the Gaza Strip and Egypt, and later discovered a group of land mines near the Jewish settlement of Morag.

More than 500 people, mostly Palestinians, have been killed since violence erupted last September.

ABCNEWS' Bob Woodruff in Jerusalem contributed to this report.