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EGYPT SETS TERMS FOR CEASEFIRE

RAMALLAH [MENL] -- Egypt intends to host new talks between Palestinian factions for a limited ceasefire plan with Israel.

Palestinian sources said Egypt has invited the ruling Fatah movement and the opposition Hamas to a meeting in Cairo next week. They said this will be the first session by Fatah, headed by Palestinian Authority Chairman Yasser Arafat, and Hamas in the Egyptian capital since November.

Egypt has pressed Palestinian factions to approve a plan for what the sources term a limited ceasefire that would last six months. The sources said the Egyptian proposal imposes conditions on Israel that would end its military operations in the West Bank and Gaza Strip and bolster Arafat's rule.

"We are working for a temporary halt to Palestinian operations, and there has been progress in this direction," Egyptian President Hosni Mubarak said in an interview with Egyptian editors. "But the factions have not reached a final agreement."

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