Israeli PM Ehud Olmert offered to ease travel restrictions on Palestinians and free up frozen funds if violence against Israel ended.
SDE BOKER: Israel is ready to release many jailed Palestinians in return for a soldier seized by militants in June, Israeli Prime Minister Ehud Olmert announced on Monday, saying he was reaching out for peace.
In a major policy speech, Olmert offered to ease travel restrictions on Palestinians and free up frozen funds if violence against Israel ended. He repeated his readiness to give up some occupied land for an eventual peace agreement.
"We are ready and willing to pursue this path, and persevere until we reach the sought-after solution," Olmert said.
Within hours of Olmert's address, Palestinian militants in Gaza fired rockets into the Israeli border town of Sderot, despite a ceasefire declared on Sunday. Nobody was hurt.
Al-Aqsa Martyrs Brigades, part of Palestinian President Mahmoud Abbas's Fatah faction, claimed responsibility for the attack, which followed the killing of two Palestinians in an Israeli raid in the West Bank, where a truce is not in effect.
"In response to the prime minister extending his hand in peace, we see what some Palestinian factions are giving in return," Olmert spokeswoman Miri Eisin said.
Both Olmert and Abbas are under growing US pressure to show progress on ending decades of conflict. The US State Deparment said Secretary of State Condoleezza Rice called Olmert to welcome his speech.
"I think this, combined with the announcement of a ceasefire, are certainly welcome developments, certainly potentially promising," said State Department spokesman Sean McCormack of Olmert's speech.
A State Department official said Rice may meet both Olmert and Palestinian President Mahmoud Abbas separately while she is in the region accompanying President George W. Bush to Jordan this week. But the official said this was not yet definite.
The European Union also hailed the "rays of hope" for Middle East peace and EU Foreign Policy Chief Javier Solana said the Quartet of Middle East peace brokers could help by setting up a mechanism to monitor the truce.
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