FM Shimon Peres met with Palestinian Minister Nabil Shaath in Athens. (AP)

	Is the "no talks under fire" policy cracking?
	The U.S. is getting more involved
	Yossi Katz's meeting with Arafat criticized in Knesset
	US will not force peace in Middle East
	Sharon's diplomatic plan
	Arafat calls for talks; no plans for Arafat-Sharon meeting
	Israeli Ministry of Foreign Affairs
	Palestinian National Authority

"It was a plotted attempt to assassinate the security chiefs," Palestinian Intelligence Chief Amin al-Hindi said to reporters.

The IDF Spokesman denied that Israeli troops had opened fire, claiming they were returning fire at the lead jeep in the convoy, which had initiated the gunfire.

An unnamed Israeli military official quoted in Reuters said there was a "good atmosphere" at the security talks, held at an undisclosed location in central Israel, but that no substantial progress had been made.

Present at the meeting were senior IDF officers, including

"We can definitely talk about how to stop the fire" - Foreign Affairs Minister Shimon Peres

Central Command head Yitzhak Eitan, head of the Southern Command Doron Almog, head of the IDF's Operations Directorate Major General Giora Eiland and General Security Service chief Avi Dichter. On the Palestinian side delegates included Palestinian Public Security Chief Major-General Abdel-Razek al-Majaydeh, Gaza Strip Preventive Security Chief Mohammed Dahlan and al-Hindi. A CIA official was also in attendance in an observer status.

The presence of the CIA observer, who will report directly to U.S. Secretary of State Colin Powell, marked a change in President Bush's previously announced policy of a reduced American role in the negotiations between Israelis and Palestinians.

Peres meets Shaath and Erekat in Athens
Wednesday's diplomatic activities started with the meeting between Foreign Affairs Minister Shimon Peres and Palestinian ministers Nabil Shaath and Saeb Erekat in Athens in the first high-level bi-lateral talks in two months. The talks, held together with European Union security chief Javier Solana and EU Middle East envoy Miguel Moratinos, were on the sidelines of an economic conference.

"We said we would not negotiate under fire, but we can definitely talk about how to stop the fire," Peres told Israel's Channel Two television on the eve of the session, held on the sidelines of an economic conference in the Greek capital.

"We exchanged ideas, not negotiations," Peres said following the meeting. According to Erekat, however, the meeting in Athens focused mainly on political issues. "We had a very long and candid exchange of thoughts on all issues, the political aspect, the security aspect. We have different points of views in the ways we see things on the ground,'' Erekat said.

Tourism Minister Rechavam Ze'evi expressed his dissatisfaction with the Athens meeting. "It's impossible that the government declares there are no negotiations... and the foreign minister travels to Athens, and happens to meet with those two Palestinians," he told Israel Radio.

Three women MKs meet with Arafat
Later yesterday morning, Zahava Gal-On (Meretz), Naomi Chazan (Meretz) and Labor Party MK Colette Avital met with PA Chairman Yasser Arafat in Ramallah. Gal-On said the Palestinians "apparently understood that the time has come to renew dialogue."

The Israeli delegation reportedly relayed a message to Arafat from Defense Minister Benyamin Ben-Eliezer, reiterating Israel's position that diplomatic negotiations could only continue when there was a drop in violence.

Right-wing Knesset members criticized the meeting with Arafat. MK Shaul Yahalom (National Religious Party) said only the government is authorized to hold talks with Arafat.

In response, Gal-On said that "everything must be done to stop the violence; the murder of babies on both sides is terrible."

In a related story, government sources yesterday confirmed that Omri Sharon, son of the Prime Minister, accompanied envoy Yossi Ginossar to a secret meeting with Arafat on Sunday night in Ramallah. Ginossar, a businessman and ex-Shin Bet official with broad Palestinian connections, often carried out shuttle diplomacy missions for Ehud Barak. According to spokesman Raanan Gissin, Omri Sharon had been sent with a clear message that "the violence must stop."

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