Palestinian Arab gunmen wounded five Israeli soldiers Thursday, as Jerusalem prepared to set free jailed terrorists as part of the continuing ceasefire charade that is garnering high praise in Western capitals.

The first shooting attack took place in central Gaza, where two IDF soldiers were lightly wounded when a heavily armed terrorist hurled hand grenades and opened fire on their vehicle.

The soldiers returned fire, killing their assailant.

On Thursday night, terrorist gunmen attacked an army vehicle near the Judean town of Hebron, wounding three Israelis. One victim was listed in serious condition and was airlifted to Beersheva’s Soroka Medical Center.

Earlier in the day, a 16-year-old Palestinian Arab was caught attempting to smuggle a terrorist bomb belt and machinegun ammunition through an army checkpoint outside of Shechem in Samaria.

Security sources reported some 50 intelligence warnings of pending “Palestinian” attacks Thursday, and Jerusalem was placed on high alert for several hours as troops searched for terrorist infiltrators.

Paying off the terrorists

The ramped up Arab aggression against Israel’s Jews came as the government of Prime Minister Ariel Sharon was setting plans to release some 900 jailed “Palestinian” terrorists in a gesture of goodwill towards the regime of PA leader Mahmoud Abbas.

Sharon has expressed satisfaction with Abbas’s efforts to convince the terror groups to temporarily halt attacks against Israelis until after the PLO chief has a chance to extract further concessions at the negotiating table.

Media reports Thursday indicated the two leaders will jointly announce an end to the “Oslo War” when they meet in Sharm el-Sheikh next Tuesday at the invitation of Egyptian dictator Hosni Mubarak.

But Abbas is said to be using the opportunity to turn the screws on his “peace partners.”

Talks between Israeli and PA officials Thursday night over the upcoming prisoner release broke down after the “Palestinian” side demanded many more hundreds be set free than Israel was offering.

Abbas is also expected to insist on a full renewal of final status peace negotiations, a step Israel has said it is not prepared to take until the PA makes meaningful moves to eliminate anti-Jewish terror.

Preparing for war

Pointing to precedents, analysts predict the terror groups will use Israel’s failure to comply with Abbas’s demands in full as justification to drop any pretense of a ceasefire and wholly resume their campaign of mass murder.

Last week, Abbas reportedly gave Hamas the green light to fully return to the “path of armed resistance” the moment Israel’s diplomatic offers became unsatisfactory.

From its inception last month, Foreign Minister Silvan Shalom warned that the Abbas-brokered truce was a “ticking bomb which would blow up” in Israel’s face.

Shalom pointed out that the ceasefire allowed the terror groups to remain fully armed and operational - a violation of the PA’s signed agreements. (Copyright 2002-2005 Jerusalem Newswire. 02/03/05)