TEL AVIV, JERUSALEM

Israeli units began withdrawing from the town of Bethlehem and the village of Beit Jala and surrounding areas on Monday night, a day after they moved into the territories.

In Bethlehem, Israeli troops began moving out of a hotel they had commandeered, while tanks withdrew from nearby el-Khader and the Aida refugee camp.

Palestinian police were reportedly taking control of areas relinquished by Israeli troops - a move Israel had insisted upon to prevent attacks by militants on withdrawing troops.

The Palestinian leadership had demanded Israel withdraw from Palestinian-ruled areas of the West bank and Gaza as a precondition for ceasefire talks.

The withdrawal came shortly after US Vice President Dick Cheney joined US peace envoy Anthony Zinni for talks with Israeli Prime Minister Ariel Sharon.

In the highest-ranking visit to Israel of a Bush administration official, U.S. Vice President Cheney arrived Monday afternoon amid hopes of an Israeli-Palestinian cease-fire and Palestinian irritation at the absence from his agenda of a meeting with PA Chairman Yasser Arafat.

Cheney met Prime Minister Ariel Sharon for a three-hour dinner meeting Monday evening. The Prime Minister's Office said that the two discussed "regional and local matter of interest to the two countries and promoting relations between Israel and the U.S."

Calling Sharon his "old friend," Cheney said that he had made this journey on behalf of President George W. Bush to confer with regional leaders on issues of great importance, including the conflict and the proliferation of weapons of mass destruction in the region.

"I come as well to reconfirm the strong and enduring ties between the American and Israeli peoples and to remind the world of the commitment of the U.S. to the security and well-being of Israel."

"The U.S. has confirmed to help Israelis and Palestinians achieve that future as evidenced by Zinni's return to the region," he continued. "Our goal is clear, to end the terror and violence, to build confidence between Israelis and Palestinians that peace is not only possible by necessary and to resume a political process that will end the half-century of conflict."

Palestinian Officials Say US Demonstrate Bias Toward Sharon

Asked if U.S. efforts would involve him meeting Arafat, Cheney replied: "I am going to meet General Zinni ... and what, if any contribution, I can make to his ongoing effort is something I can look to him for guidance on this afternoon."

Palestinian officials have said that Cheney's reluctance to meet Arafat demonstrates a U.S. bias toward Israel and Sharon.

"I wonder how Cheney can say he's pursuing peace between the Palestinians and Israelis by meeting the leader of one side and not the other," senior Palestinian negotiator Saeb Erekat said.

Cheney also said "the door is certainly open" for a meeting with Arafat but cautioned that it was not inevitable.

Arab leaders have told Cheney that raging Israeli-Palestinian violence is a far more pressing priority to them than the U.S. campaign to stop Iraqi President Saddam Hussein acquiring weapons of mass destruction. They have urged greater U.S. involvement in the search for peace.


Gaza violence

The tentative moves towards restoring calm were shaken after Israeli troops shot dead what they said was an armed Palestinian at a crossing point between Gaza and Israel, and Palestinian militants fired rockets from Gaza into Israel.

At least five Palestinians were also wounded in clashes in the town of Deir al-Balah.

Israeli troops and bulldozers briefly entered the Gaza village al-Qarara after two home-made unguided Qassam-2 rockets hit farmland near the Israeli coastal town of Ashkelon.

Palestinian security forces said five Palestinians were hurt in the incursion and two homes were demolished.