Palestinians Want Payback

Raising a new demand, Palestinian negotiators said today that Israel must pay compensation for three decades of military occupation of the West Bank and Gaza Strip as part of a full peace treaty.

The demand was included in an outline for such a treaty submitted by the Palestinians in the fourth round of negotiations. They did not say how much money they expected from Israel.

In addition, an already delayed West Bank troop withdrawal is on hold at least until Sunday when the two sides will meet to try to resolve an impasse over who decides what land is handed over, officials said.

Israel was to have withdrawn from five percent of the West Bank earlier this week. However, the pullback was put off indefinitely when the Palestinians said the land they were to be given was too sparsely populated and did not connect enclaves already under their control.

Israel says its exclusive right to choose the areas to be handed over is anchored in earlier peace accords. The Palestinians say they must be consulted.

The dispute over the withdrawal was not raised in today's 90-minute session on a final peace treaty, said the Israeli chief negotiator, Oded Eran.

The Palestinians instead submitted their proposal for a framework agreement, the Palestinian Information ministry said.

Most of the positions outlined in the document were well known.

The Palestinians demanded that Israel withdraw from all the land it captured in the 1967 Mideast war, including the West Bank, Gaza Strip and east Jerusalem.

Jerusalem would become an open city, with the eastern sector, including the Old City, turning into the Palestinian capital, and the western sector serving as the Israeli capital.

The millions of Palestinian refugees displaced in the 1948 and 1967 Mideast wars would have to be compensated or allowed to their homes and all Jewish settlements would have to be dismantled, the ministry said.

The Palestinian outline showed that no progress has been made in narrowing the gaps since the talks began Nov. 8.

Israel says it will not withdraw to 1967 borders, keep control over all of Jerusalem as well as most of the settlements, and not allow the return of refugees to Israeli territory.

Both Eran and Palestinian negotiator Yasser Abed Rabbo said the atmosphere was positive. The next session is to be held Monday in the West Bank town of Ramallah.