Israel frees jailed Palestinians

Israel freed 198 Palestinian prisoners today amid scenes of jubilation in the West Bank as US Secretary of State Condoleezza Rice flew in to try and salvage a stagnating peace process.

Unusually, among those released were two men accused by the Israelis of having "blood on their hands", Said al-Atabeh, the longest serving inmate in custody, and Mohammed Abu Ali, the second longest serving, who had been elected as a Fatah MP while behind bars.

Although the Israeli government has carried out prisoner releases in the past, it had taken a hard line on those, like al-Atabeh and Abu Ali, who have been convicted of killing Israeli citizens. However, today's gesture was described by officials as a "confidence building move", an attempt to bolster the position of the Fatah leader Mahmoud Abbas.

The Bush administration wants a deal concluded between the Israelis and Palestinians by the end of the year, but that seems increasingly unlikely with George Bush about to leave office, Israeli premier Ehud Olmert due to step down with the prospect of facing criminal charges for alleged corruption and Mr Abbas under intense pressure among rank and file Palestinians from Hamas.