The Palestinian governor of Nablus is calling on residents of other towns to ignore a 40-day Israeli army curfew, following two days of defiance that restored a semblance of normal life in his city.

US Secretary of State Colin Powell discussed a possible interim Palestinian state and other peace ideas with Arab leaders in Washington as US officials cautiously welcomed a promise by the Palestinians’ new security chief to curb attacks on Israelis.

Israeli troops have moved into the West Bank town of Ramallah today, hours after Yasser Arafat named a new, streamlined Cabinet and Israeli prime minister Ariel Sharon was to meet US president George Bush in Washington.

Palestinian leader Yasser Arafat named a new, smaller Cabinet today one which includes a new minister to oversee the security forces.

Yasser Arafat today presented a plan for reforming his security services to visiting CIA chief George Tenet, with the Palestinian leader proposing to halve their number and tighten supervision.