Christian pilgrims are flocking eagerly to Bethlehem, and Israel last night began celebrating the eight-day Hanukkah festival of lights, but goodwill is in precious short supply this festive season in the Holy Land.
The joy of Christmas in Bethlehem is being undermined by statistical evidence of the outflow of Christians from the city: half a century ago, it was 80 per cent Christian; nowadays, the 50,000strong population is estimated to be 70 per cent Muslim.
Many of those Christians who remain are complaining that, over the past three years since Mr Yasser Arafat's Palestinian Authority gained control of the city from Israel, Christmas has been usurped by the Palestinian Authority as an opportunity for nationalist, rather than religious, rejoicing. Manger Square is currently festooned with Palestinian flags and portraits of Mr Arafat.
Christian unease in Bethlehem is reflected elsewhere in the Palestinian-controlled areas. Privately, Christians complain that Palestinian Authority regulations making the sale of land to Jews punishable with the death penalty are widely perceived by Palestinians to extend to land sales to any non-Muslims. One cleric has been quoted recently as alleging that Muslim clerics have been giving speeches in mosques mocking Christians for "believing in `three gods'."
Anxious to counter the sense of Christian grievance, the Palestinian Authority on Monday arranged a press conference in Bethlehem at which Christian and Muslim leaders dutifully assured the media that relations were thoroughly harmonious.
The Israeli leadership, however, appears more preoccupied with its own festive disharmonies. Yesterday's first night of Hanukkah was intended to usher in a year-long celebration of Israel's 50th anniversary of independence. Around the world, more than 30 leaders - from the US to Ireland, Canada to the Vatican - took part in Hanukkah candle-lighting ceremonies to mark the anniversary.
Unfortunately, the Israeli organisers had neglected to tell President Ezer Weizman that he was supposed to be launching the worldwide event. Mr Weizman had other plans, and only grudgingly agreed to mention the jubilee celebrations at his Hanukkah ceremony last night.
That Hanukkah mix-up has set the tone for the 50th anniversary events, which, even in the planning stages, have been beset by chronic disorganisation.
At the root of all of the end-of-year discord, Israeli and Palestinian, is the breakdown of peace efforts. Goodwill is still conspicuous by its absence. Israel is refusing to sign a new, US-mediated accord on security co-operation against terrorism, complaining that the Palestinian Authority is ignoring its calls to hand over suspected violent militants for trial.
During a ministerial tour of the West Bank yesterday, the Prime Minister, Mr Benjamin Netanyahu, again emphasised that he had no intention of relinquishing the entire West Bank to Palestinian Authority control. Having flown by helicopter across the disputed territory, Mr Netanyahu said he had seen "how narrow Israel used to be, and how vulnerable it would be if we ever returned to such boundaries. We, of course, do not intend to do that."