ISRAEL: In an embarrassing backtrack, Israel yesterday succumbed to US pressure and withdrew its troops and tanks which have been blockading Palestinian Authority President Yasser Arafat's headquarters in Ramallah for the last 10 days. But Israeli forces did not withdraw completely from the West Bank city and it was not immediately clear if Mr Arafat would be able to move freely.
The White House, which had been pushing Israel to end the siege for fear it would undermine its efforts to cobble together an anti-Iraq coalition, welcomed the pullback. But Mr Arafat dismissed the move as "cosmetic" and an attempt to "deceive" the international community.
The withdrawal, he said, did not comply with the UN Security Council resolution last week calling on Israel to withdraw its forces - not only from the battered compound, but from Ramallah and other West Bank cities altogether.
"This is not withdrawal. This is only moving a few metres away," Mr Arafat said.
Nevertheless, shortly after the troops and tanks departed, the Palestinian leader emerged from his battered office - the only building left standing in his compound, which was bulldozed last weekend by Israeli forces - blowing kisses and flashing a V-sign to hundreds of Ramallah residents. They had flocked to the area after hearing that the tanks were pulling out following a decision taken yesterday at a meeting of senior Israeli ministers.
Israeli officials insisted that even though the troops had withdrawn, the government had not relinquished its original condition for ending the siege - the handing over to Israel of militants holed up inside the compound.
To this end, they said, observation points had been set up to ensure none of them escaped.
"The Israeli army will distance its troops from the Muqata (Mr Arafat's) compound and they will be deployed in such a way that the wanted terrorists will not be allowed to leave freely," said Mr Raanan Gissin, an aide to Prime Minister Ariel Sharon.
"At the same time, anyone who is not involved can move about without hindrance."
That decision essentially means Mr Arafat remains confined to his compound. He has refused to hand over the "wanted" men - a move tantamount to political suicide among his own people - and leaving his office would enable the Israeli forces to storm it.
There were reports last night, however, that some of the militants had escaped from the compound after the tanks departed.
The withdrawal followed a meeting on Friday in Washington between Mr Sharon's bureau chief, Mr Dov Weisglass, and Ms Condoleezza Rice, in which the National Security Adviser reportedly made clear that the US expected a swift resolution to the standoff, which she said was not helpful to US efforts regarding Iraq.
Two Palestinians were killed on Saturday as marches and demonstrations were held in the West Bank and Gaza Strip to mark the second anniversary of the intifada uprising. One was killed in a firefight with Israeli soldiers in Rafah, near the Egyptian border, and the second in clashes during the anniversary protests.