JERUSALEM -- Israel on Sunday approved the release of 170 Palestinian prisoners in a goodwill gesture to Egypt and encouragement to interim Palestinian leader Mahmoud Abbas in hopes for future negotiations.
Prime Minister Ariel Sharon also neared agreement Sunday with the moderate Labor Party to expand his coalition government and ensure approval of next year's pullout from Gaza.
The developments added impetus toward ending four years of bloody Israeli-Palestinian violence and moving back to the negotiating table in the post-Yasser Arafat era.
The Palestinian prisoner decision followed Egypt's Dec. 5 release of Azzam Azzam, an Israeli Arab who served eight years in prison on an espionage charge, in exchange for six Egyptians suspected of planning attacks on Israeli soldiers.
Sharon called the decision a "goodwill gesture" and spoke of "deep friendship" for Egyptian President Hosni Mubarak.
A senior Israeli official said the move was also aimed at interim Palestinian leader Mahmoud Abbas, who is the leading candidate in a Jan. 9 election to replace Arafat.
The official, speaking on condition of anonymity, said Israel would consider further releases if the Palestinians take action against militants.
Israel tacitly supports Abbas in the election, viewing him as a moderate pragmatist. Abbas has made releasing prisoners a priority, and Israel's move could boost his standing.
Israel holds an estimated 7,000 Palestinian prisoners, many accused of security-related crimes. Officials said the prisoners to be freed next week were not actively involved in attacks on Israelis. The Israeli daily Haaretz said 120 of the prisoners are members of Abbas' Fatah Party. The others were jailed on minor offenses.
Palestinians, who have long demanded the release of all prisoners, gave Sunday's announcement a cool reception.
"We consider this step a cosmetic one. We have not been consulted about this release," said Radi Jaraie, the deputy Palestinian minister of prisoner affairs.
Palestinian Cabinet minister Saeb Erekat and top Sharon aide Dov Weisglass met Sunday to start high-level coordination of election plans. Erekat said more meetings were planned.
Sharon was maneuvering on Sunday to avoid calling an Israeli election, nearing an agreement with his rivals from the opposition Labor Party on a joint government that would ensure a Cabinet majority for his plan to pull out of Gaza and part of the West Bank next year.
Sharon lost his majority because of internal opposition to the pullout plan. Without Labor, his minority government is vulnerable to being toppled in parliamentary no-confidence votes, forcing an election.
Labor and Likud are traditionally ideological opponents.
Likud has always favored Israeli rule over the West Bank and Gaza for religious and security reasons, while Labor called for trading much of the territory for peace.
Sharon's Gaza pullout plan brought him closer to Labor's policy.Even before the present partnership, Labor and Likud have found themselves in joint governing coalitions in the past.
In 1982, A tied election forced the two parties together when neither could form a majority government. The partnership lasted two years until Labor suddenly withdrew in a parliamentary maneuver it thought would propel it to power. The move backfired, and Likud took over without Labor.
In 2001, Sharon formed a broad government with Labor which lasted less than two years. Labor withdrew after objecting to increased expenditures for Jewish settlements, triggering an election that returned Sharon to power with a huge majority and left Labor in the opposition.
A Labor official said Sunday that a draft agreement was ready and both sides were examining it. Israeli media reported last-minute difficulties but expected the new government to be presented next weeek.
The announcement pof the prisoner release hours after the end of a two-day Israeli operation in a Gaza refugee camp in which 11 Palestinians were killed.
Israeli soldiers pulled out of the Khan Younis camp in southern Gaza after destroying buildings Israel said were used as cover by militants to fire dozens of mortars and rockets at nearby Jewish settlements and army bases. In recent days a Thai worker was killed and 17 Israelis, including 11 soldiers, were wounded.
A U.N. agency said nearly 40 houses were destroyed.
Residents awoke Sunday to piles of broken furniture, clothing and household goods strewn throughout the destruction.
"What can we do, and where can we go? They left us nothing," said Amena Tratori, a 44-year-old mother of 6, looking at the mound of rubble that was once her home.
"If they (the Israelis) think that by killing people and destroying their homes they can stop resistance, they are mistaken," she said. "The young children will remember the destruction and will never forget."
By MARK LAVIE Associated Press Writer December 19, 2004, 5:09 PM EST
Copyright © 2004, The Associated Press
Copyright © 2004, The Associated Press
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