The cabinet of Israeli Prime Minister Ariel Sharon met on Thursday and approved the release of 900 Palestinian prisoners as a goodwill gesture towards newly elected Palestinian Authority President Mahmoud Abbas. In addition to the release, the cabinet announced that Israeli troops would pull back from the West Bank city of Jericho in order to improve the atmosphere prior to next week's scheduled summit in Egypt. Jericho is the first of five cities that Israeli troops will fall back from in the next few weeks.

Israel also announced that it would end the targeted attacks on Palestinian terrorist leaders and that a joint Israeli-Palestinian committee would decide what to do about Palestinians wanted for planning and carrying out terror attacks.

'We are not talking about peace now, and not about the 'road map,' but rather about phases that come before implementation of the 'road map,'' Sharon said at the cabinet meeting.

Meanwhile, Mr. Abbas was confident that he would get a commitment from militant groups like Hamas and Islamic Jihad to end terror attacks against Israel if Israel would end military actions in the West Bank and Gaza Strip.

'We have announced a cease-fire, and the Israelis should announce one also,' Abbas told reporters.

The key question now becomes whether or not these good will gestures will continue or one incident of terror will break the momentum. At least for the first time since the outbreak of the second intifadah in September 2000, both sides seem to be seeking ways to ease tensions and increase cooperation.