Defense Minister Shaul Mofaz informed Palestinian Authority Minister of Security Muhammad Dahlan on Wednesday night that Israel expects the Palestinians to take immediate steps to destroy the terrorist infrastructure, confiscate weapons, and arrest terrorist leaders.

At the same time, he expressed willingness to hand over two additional West Bank cities, Kalkilya and Jericho, to PA security control within days, Israeli security officials said.

"The Palestinians have not yet started to arrest terrorists, collect arms, or destroy the infrastructure in Bethlehem and the Gaza Strip that was handed over to them some weeks ago," an official said.

Another point of concern for Israel is the ongoing attempts by Hamas to extend the range of the Kassam rocket, seen in test launches they carry out almost daily over the sea, an official said. "We are also aware of the transferral of technology by Hamas from the Gaza Strip to the West Bank. This will pose a direct threat to Israel´s coastal area in the future if the Palestinians refuse to deal with the issue immediately," the official said.

PA officials close to Dahlan told reporters earlier that in the meeting with Mofaz he would first demand security control over Ramallah, where PA Chairman Yasser Arafat remains under siege in the Mukata complex, then Nablus, and possibly Kalkilya.

Mofaz and Dahlan met outside Jerusalem at Neveh Ilan, where Mofaz also updated him on the scheduled release of 540 Palestinian security prisoners, including 110 members of the Islamic Jihad and Hamas. "The prisoner release is expected to take place some time next week, after the ministerial committee finishes reviewing the list to ensure that all those on it meet the necessary security criteria," an official said.

The official was unable to comment on reports that the Palestinians plan to ask Israel to allow scores of Palestinian fugitives from Jenin and Nablus to be transferred to Jericho, on the understanding that none of them will be arrested by Israeli security forces or by the Palestinians if they continue to maintain the cease-fire. "We have heard such requests in the media, but the defense minister has yet to receive an official request. Mofaz will either turn the offer down immediately or agree to study the issue," an official said.

On Tuesday, a senior security official confirmed the report, but refused to divulge whether Israel would agree to such a request. According to reports, two Palestinians who have already moved to Jericho are Islamic Jihad member Mahmoud Kamil, suspected of perpetrating shooting attacks against Israelis, and Fatah member Hatem Abu Halima, who is suspected of working with senior Palestinian officials involved in smuggling weapons and terrorist activities.

In previous meetings, Mofaz has stressed that any further easing of restrictions will be based on the results of Palestinian actions on the ground.

Despite this, Israel earlier this week carried out a number of steps, removing military roadblocks in Judea and Samaria, lifting travel restrictions, and increasing the number of Palestinian laborers from the Gaza Strip and the West Bank permitted to enter Israel to work, as faith-building measures toward the Palestinians. (© 1995-2003, The Jerusalem Post 07/31/03)