If there is now a successful ceasefire ­ and that remains in doubt ­ and if there is no progress on this front, the peace plans are likely to falter.Wrangling over nailing down the current, incomplete ceasefire had dragged into the night after the Palestinians rejected two deadlines for signing the deal, and continued to balk at several conditions. The main obstacles in the way of the deal were the rejection by Israel's Prime Minister, Ariel Sharon, of Palestinian demands for a timeline for ending the military blockades, which have sent Palestinian unemployment rocketing to more than 40 per cent, and the unwillingness of the Palestinians to arrest a group of 16 Islamic militants from the Islamic-nationalist Hamas and Palestinian Islamic Jihad suspected of being involved in bombing attacks against Israeli civilians. Israel said earlier it had accepted the proposals ­ which were weighted in its favour ­ although unenthusiastically, while the Palestinians were expressing deep misgivings.Some Western sources said the Americans had pressured Mr Arafat by indicating that, if he rejected the deal, they would give a green light to Mr Sharon to escalate the conflict, possibly toppling the Palestinian Authority and throwing out Mr Arafat Others denied this "It has not been put in such terms," said one source. "The Palestinians are claiming that there have been ultimatums, but my understanding is that the Americans are only saying that this is the best deal they can get."The Palestinians had pressed for the ceasefire proposals to be linked to a promise of progress concerning recommendations made by the Mitchell Commission, which is supposed to be the basis for returning both sides to the negotiating table.

The Israelis are insisting on an eight-week "cooling-off" period before addressing the diplomatic issues.Chief among these is a call for a complete freeze by Israel of the construction of Jewish settlements. To Arab dismay, the ceasefire agreement promoted by Mr Tenet deals with security issues and contains no mention of the settlements.. Israel and the Palestinians accepted a truce plan proposed by CIA chief George Tenet, raising the prospect of an end to nearly nine months of fighting that has claimed almost 600 lives. Israel and the Palestinians accepted a truce plan proposed by CIA chief George Tenet, raising the prospect of an end to nearly nine months of fighting that has claimed almost 600 lives. There was a possibility implementation could start today, after a three–way meeting of Tenet and security officials from both sides in Tel Aviv, although there is disagreement on some key issues, including a buffer zone Israel wants to establish along the frontier with the West Bank.Palestinian Information Minister Yasser Abed Rabbo said he expected Israel to take substantial steps within the next 48 hours toward lifting its sweeping travel restrictions on Palestinians. Within a week, Israeli troops would have to withdraw to the positions they held before the outbreak of the fighting, the minister said.Israeli Cabinet Secretary Gideon Saar gave no indication whether Israel agreed to this schedule, but suggested that if the cease–fire was observed, Israel would reciprocate rapidly."When the fire stops completely, we will be able to see changes on the ground within a short period of time, regarding pulling back forces and returning life to normal," Mr Saar told Israel radio.Palestinians accepted the U.S. plan, albeit with reservations, after a meeting last night between Mr Tenet and Palestinian leader Yasser Arafat in the West Bank town of Ramallah. Israeli Prime Minister Ariel Sharon had announced his acceptance of the plan a few hours earlier.While Mr Tenet was trying to cement the truce, two Israelis were wounded by Palestinian gunmen near the Jewish settlement of Ofra in the West Bank today.

The two Israelis were standing by the side of the road near the gates of Ofra when they were shot from a passing car, police said. The two men were in stable condition.Last night, a Greek monk was killed by Palestinian gunmen while driving from Jerusalem toward his monastery near the West Bank town of Jericho.In a first sign of implementing one of the truce provisions, Palestinian police in the Gaza Strip today searched cars for mortar launchers. In recent months, Palestinians have fired dozens of mortars at Jewish settlements in the strip.As Mr Tenet and Mr Arafat talked late Tuesday, about 1,000 Palestinians demonstrated nearby against the U.S proposals. Marwan Barghouti, West Bank leader of Arafat's Fatah movement, said that Mr Tenet "aims to end our intefadeh (uprising) without any political achievements."the CIA chief arrived last week to try to stabilize a shaky cease–fire that has been punctuated by Palestinian attacks and Israeli fire in return.Mr Sharon declared a unilateral cease–fire May 22, but the Palestinians dismissed it as a publicity stunt. After a Palestinian suicide bomb attack in Tel Aviv June 1 killed 21 people, most of them Israeli teenagers, Mrr Arafat called for an immediate end to violence..