BBC News - Nov. 27, 2006
Israeli Prime Minister Ehud Olmert says he hopes to revive long-stalled peace efforts with the Palestinians, as a ceasefire takes hold in the Gaza Strip.
In a major policy speech, Mr Olmert pledged humanitarian and economic incentives if militants freed a captive Israeli soldier and violence ceased.
Mr Olmert said the Palestinians now stood at an "historic crossroads".
The speech comes against a backdrop of increased diplomatic activity including visits by top US officials this week.
Earlier, Israeli troops shot and killed two Palestinians in a raid in the West Bank, one a militant and the other a 55-year-old woman.
I hold out my hand in peace to our Palestinian neighbours in the hope that it won`t be returned empty
Ehud Olmert
Under the ceasefire, Palestinian militants agreed to stop rocket attacks on Israel, and Israeli troops withdrew from Gaza.
However, rockets have continued to be fired, the latest attack hitting the Israeli border town of Sderot on Monday afternoon. There are no reports of injuries.
Mr Olmert said Palestinians would see substantive improvements in their lives if they chose the path of peace.
"I hold out my hand in peace to our Palestinian neighbours in the hope that it won`t be returned empty," Mr Olmert said
Mr Olmert spoke of releasing many long-term Palestinian detainees in Israeli jails, lifting restrictions on the occupied territories, dismantling settlements and ultimately creating a viable state.
However, he also warned of the dire consequences if violence continued.
He was speaking at an annual memorial at the grave of Israel`s founding premier David Ben-Gurion.
Threat
The BBC`s Jon Leyne in Jerusalem said all Mr Olmert`s pledges have been made before, but their importance lies in the context in which they are now being made.
Palestinian militant groups have warned that the ceasefire which came into force on Sunday could collapse unless Israel halts military operations in the West Bank.
Monday`s deaths were in the town of Qabatiya near Jenin in the northern West Bank.
The official Palestinian news agency said the woman had been shot as she went to the aid of and injured militant from the Popular Resistance committees. The Israeli army said she had been trying to recover his gun.
The last four months have seen an upsurge of violence in the Gaza Strip which has killed more than 300 Palestinians, including scores of civilians. Five Israelis have also died.
Israeli troops re-entered Gaza - which they quit more than a year ago in a unilateral withdrawal - after Palestinian militants captured a soldier in a cross-border raid in June.
HAVE YOUR SAY
Another chance is being given to the Palestinians. If they don`t take it they will end up a broken people.
Jamie, UK
Mr Olmert won elections in January on a pledge to make further unilateral withdrawals, but credibility in the policy was dashed in a summer of conflict in Lebanon and the Gaza Strip.
In March, the Hamas militant movement won Palestinian elections on a platform of not recognising Israel`s right to exist. Israel has ruled out political engagement with the Palestinians until Hamas softens its stance.
