Hamas told Palestinian Authority Chairman Mahmoud Abbas yesterday it was prepared to immediately halt Qassam attacks on Israel from the Gaza Strip. The announcement came at a meeting yesterday of Palestinian factions, in which Abbas presented Defense Minister Amir Peretz's proposal for a mutual cease-fire.

The meeting, which took place yesterday afternoon in Gaza, was attended by representatives of the five largest Palestinian factions: Hamas, Fatah, Islamic Jihad, the Popular Front for the Liberation of Palestine (PFLP) and the Democratic Front for the Liberation of Palestine (DFLP). Khalil Hiya and Jamal Abu Hashem represented Hamas.

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Abbas opened the discussion by reporting he had received a proposal from Israeli Defense Minister Amir Peretz for a mutual cease-fire. He said that as opposed to previous cease-fire initiatives, in which Israel made unilateral demands of the Palestinians, Israel would agree this time to stop the fighting from its side, as well. "I told Peretz that Israel must also stop firing," Abbas said of his response to Peretz's request that the Palestinians halt their Qassam attacks.

Abbas conceded, however, to those present that Prime Minister Ehud Olmert's position on the cease-fire was still unclear, in light of media reports yesterday that the prime minister had prohibited Peretz from meeting with Abbas.

Palestinian sources said Hamas representatives Hiya and Abu Hashem expressed willingness to stop firing Qassams at Israel. However Abbas also demanded a commitment from Hamas to stop attacks in the West Bank. In response to this, the two men said they would need additional time to consult with senior members of the organization before coming to a final decision on the matter.

The head of the Hamas parliamentary faction, Salah Bardawil, told Haaretz yesterday that his organization was prepared to engage in an immediate cease-fire with Israel, on the condition that it be mutual. Bardawil said Prime Minister Ismail Haniyeh had proposed returning to an agreement on a tahadiyeh - a temporary cease-fire, before, "but now the problem is on the Israeli side."

He added, "Peretz and Olmert are divided in their opinions and it is not clear to us what Israel's position is on stopping the fighting. Peretz asked Abu Mazen [Abbas] for a cease-fire, the chairman asked for an Israeli commitment to stop the firing on its side, but Peretz cannot give an Israeli answer on this subject."

Meanwhile, individuals involved in negotiations to free kidnapped Israeli soldier Gilad Shalit yesterday denied reports by a number of representatives of Palestinian organizations that talks on Shalit's release had come to a standstill. According to the sources, talks are still ongoing and significant progress has been made. They added they believed that by Id al-Adha (the feast of the sacrifice) in late December, a deal would be complete.

Palestinian sources revealed that Egyptian intelligence chief Omar Suleiman is expected to arrive in Israel tomorrow for talks on Shalit's release. The sources declined to go into detail on the points so far agreed upon in the negotiations on a comprehensive prisoner exchange.

Meanwhile, an Israeli aircraft hit a car yesterday in which two Hamas activists were traveling in the Sajaiyeh section of Gaza City. The two, senior activists in the Hamas military wing, Abdel Khader Habib and Basel Obeid, were killed. Six passersby were also killed in the attack.