The Israeli army has granted 16 Palestinians deported to the Gaza Strip during the recent Intifada to return home to the West Bank.
Israeli Defence Minister Shaul Mofaz also paved the way for an additional 20 Palestinians deported from Bethlehem to Europe to return once Israel transfers control of the city in the next few weeks.
Further confidence building measures for the peace process have already been announced, including a declared end to the policy of demolishing Palestinian suicide bombers' houses.
Israel is also expected to free 500 Palestinian prisoners shortly.
In response, the Palestinian authorities have made efforts to restrain militant groups from attacking Israel.
There was widespread relief yesterday when a 12-year-old Palestinian boy, thought to have been shot by Israeli troops in the Gaza Strip, was instead found to have sustained his injuries from a biking accident.
Andrew Zilouf
Israel Frees Palestinians
Sixteen Palestinians deported by the Israeli army have been allowed to return home.
