Israel releases Palestinian tax funds and moves towards talks

ISRAEL yesterday said it would hold security talks with Palestinians soon and release more frozen tax money as part of a pledge to ease the hardships of 700,000 people under Israeli curfew in the West Bank.

The Israeli gestures, made after international condemnation of an Israeli air raid in Gaza a week ago, coincided with US plans to discuss with Palestinian officials in Washington next month steps to reform the Palestinian Authority.

While the moves toward dialogue provided a rare ray of light in 22 months of violence, a Palestinian peace negotiator noted that residents of seven West Bank cities reoccupied by Israel last month after suicide bombings remained confined.