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Israel, Palestinians declare end to violence

SHARM EL-SHEIKH, Egypt, Tuesday (Reuters) Israeli and Palestinian leaders proclaimed a formal end to more than four years of bloodshed at a summit in Egypt on Tuesday.

Palestinian President Mahmoud Abbas said he agreed with Israeli Prime Minister Ariel Sharon to stop all violence. Sharon announced an end to military action after the highest-level talks since a Palestinian uprising blew up in 2000.

"The calm which will prevail in our lands starting from today is the beginning of a new era," said Abbas at the Red Sea resort of Sharm el-Sheikh where Israeli and Palestinian flags flew side by side.

Sharon said: "For the first time in a long time there is hope in our region for a better future for us and our grandchildren."

The gestures reflected a dramatic brightening of prospects for Middle East peacemaking since the November death of Palestinian leader Yasser Arafat and the rise of Abbas to succeed him on a platform of non-violent struggle.

Reinforcing the sense of optimism, Egypt said that both it and Jordan would return ambassadors to the Jewish state for the first time since the start of the uprising. Although no ceasefire was signed at the summit, it was widely seen as a step back towards negotiations on a U.S.-backed "road map" for a Palestinian state alongside a secure Israel.

But Palestinian militants behind suicide bombings, rocket attacks and shootings said they were not bound by Abbas's ceasefire, though they continue to follow a de facto truce.

And the two sides remain far apart on issues that led to the collapse of talks for a Palestinian state on land occupied by Israel in the 1967 war - like borders, and whether Palestinian refugees get a "right to return" to land in what is now Israel. Some 3,350 Palestinians and 970 Israelis have been killed since September 2000.

"We know that the Middle East still has a long way to go, but I have to say that in my meetings with Israeli Prime Minister Sharon and President Abbas, I saw that these leaders have understood that it is time to move ahead," U.S. Secretary of State Condoleezza Rice said in Rome.

Rice met both men this week on a visit that demonstrated a new U.S. commitment to peace efforts.

Hundreds of Egyptian police, some with sniffer dogs, were deployed to ensure security in Sharm el-Sheikh.

"Today in my meeting with Abbas, we agreed the Palestinians would stop all acts of violence against Israelis everywhere, and in parallel, Israel would cease its military activity against the Palestinians everywhere," Sharon said.

Palestinian officials said Abbas and Sharon would hold more meetings in coming weeks. But Hamas, an Islamic group committed to destroying Israel, said it was disappointed by the summit.

"The Israeli position did not change despite the goodwill initiatives from the Palestinian sides," said Gaza spokesman Mushir al-Masri. The factions have said Israel's promise to free 900 out of 8,000 Palestinian prisoners, to pull back troops and end assassinations are not enough.

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