HIGHLIGHTS: Once Drawing Widespread International Criticism, Israeli Incursions into Palestinian Territory Now Go Largely Un-noticed||Sharon Hosts Burns & El-Baz||Mideast Peace Conference Now Possible by Year End||STORY: Israeli occupation forces have moved into the West Bank towns of Tulkarm and Bethlehem in the latest in a series of fresh incursions into Palestinian areas. (Read photo caption)

The latest incursions came as diplomats converged on the region, looking for ways to end, or at least reduce, 20 months of Mideast violence. But no new peace initiatives have emerged.

The almost daily Israeli forays into Palestinian territory, which once drew widespread international criticism, now produce little reaction, aside from Palestinian condemnations.

SHARON HOSTS BURNS & EL-BAZ

In his meeting with U.S. Assistant Secretary of State William Burns, Prime Minister Ariel Sharon cited the possibility of "progress" on the diplomatic front, although he quickly added conditions.

Sharon's office quoted the prime minister as telling Burns of "Israel's position that cessation of terror, violence and incitement and a thorough reform of the Palestinian Authority were conditions for progress in the diplomatic process."

Sharon played host Friday to Burns and Osama el-Baz, adviser to Egyptian President Hosni Mubarak CIA Director George Tenet was expected in the region over the weekend.

The main aim of Tenet's mission is to begin reform of Palestinian forces and to re-establish their security co-operation with the Israelis.

Egypt is reported to have produced a blueprint for an overhaul of the Palestinian Authority, which both Israel and the United States are demanding.

Mr. Mubarak is due to travel to the US to meet President Bush next week.

*MIDEAST CONFERENCE POSSIBLE SECOND HALF OF JULY

The United States has proposed an international conference on the Mideast this summer to revive the broken-down peace process, but with ongoing fighting, no date has been set. Javier Solana, the European Union foreign policy chief, who was also visiting the region, said, "we are working as hard as necessary to make it come about in the second half of July."

Mr. Solana has since arrived in Tel Aviv for weekend talks.

U.S. officials now say an international conference to revive peacemaking is likely later in the year, rather than the summer, because there is so much groundwork to lay.

PHOTO CAPTION

An Israeli occupation soldier directs a group of tanks at the Gilo checkpoint as the occupation army pulls out of Bethlehem after occupying the West Bank town for four days May 30, 2002. The four-day occupation of Bethlehem was an exception to a new Israeli practice of brief raids into Palestinian areas to make arrests and search for weapons and explosives. Early Thursday, Israeli forces entered Hebron, 15 miles south of Bethlehem, made several arrests, and left a few hours later. REUTERS/Magnus Johansson