Blow to ceasefire as Israel reneges on prisoner deal

ISRAEL has halted the release of Palestinian prisoners, demanding that the Palestinian Authority crack down on militants before anyone else is freed, in a blow to a ceasefire that has drastically reduced bloodshed.

The decision followed a declaration last week that Israel would not hand over three more West Bank towns to Palestinian control for a similar reason a claim that Palestinians had not moved against militants in the two towns they took over patrolling since the February 8 truce. Palestinians accused Israel of stalling.

Israeli and Palestinian officials met to discuss the prisoner issue, but the meeting ended in disagreement. Palestinians accused Israel of breaking the terms of the truce, endangering its continuation and weakening the new Palestinian leader, Mahmoud Abbas.

The Israelis repeated Sharon's statement from a cabinet meeting a few hours earlier, where he said he would instruct his negotiators to tell the Palestinians that no more prisoners would be released until militants were reined in, meeting participants said.

According to the ceasefire terms, Israel pledged to hand over five West Bank towns to Palestinian control and free 900 prisoners. However, Israel stopped the process after two towns were turned over and 500 prisoners freed, saying the Palestinians were not fulfilling their obligations stopping all violence and disarming militants in towns under their control.

Israel is holding about 8,000 Palestinian prisoners.

Palestinian negotiator Saeb Erekat accused Israel of stonewalling. "It seems to me that they will not release the prisoners, they will not hand over the areas, they will not end the question of the fugitives," Erekat said.

Palestinian cabinet minister Ghassan Khatib warned Sharon's policies "would only lead to the collapse of the recent ceasefire."

Abbas is in dire need of a boost to his prestige after the militant Islamic Hamas group made inroads in local elections on Thursday, ahead of parliamentary elections in July.