In a move that reflects the deep concern in Israel and the Palestinian Authority over the rise in popularity of the militant Islamic movement Hamas, Israel's Defence Minister, Mr Yitzhak Mordechai, and Mr Yasser Arafat agreed last night to upgrade co-operation between their security forces.
The agreement, reached after more than two hours of talks that were also attended by an almost unprecedented team of senior military and intelligence officials on both sides, is intended to restore the partnership between the Israeli army and intelligence services and their Palestinian counterparts to a level not seen for more than a year.
The security partnership broke down in September 1996, when Israeli and Palestinian troops turned their guns on each other in a mini-war that followed Israel's opening of a controversial archaeological tunnel alongside Jerusalem's Temple Mount.
Rather than an indication of genuinely warming relations, the decision to upgrade co-operation now underlines how much Israel and the PA feel threatened by the marked surge in popularity of Hamas since Israel - seeking to mollify Jordan over a bungled assassination attempt on a Hamas official in Amman last month - acceded to pressure from King Hussein and released the Hamas spiritual leader Sheikh Ahmed Yassin from a life jail term, allowing him to return to Gaza.
Though paraplegic, very deaf and losing his sight, Sheikh Yassin has rapidly proved that he remains a potent and uncompromising political figure.
His refusal to take a firm stand against suicide bombings, and his criticisms of Mr Arafat and the PA for having entered a peace process with Israel, have left Israel feeling vulnerable to further bombings, and Mr Arafat sensing a first real challenge to his regime.
That a real peace partnership with Mr Arafat is anathema to this Israeli government was made clear again yesterday by the Prime Minister, Mr Benjamin Netanyahu, albeit unintentionally.
In whispered remarks to a leading rabbi, which he did not realise were being picked up by a reporter's microphone, Mr Netanyahu scoffed that the Israeli left wing, whose government he defeated last year, had "forgotten what it is to be Jewish". "They think they can put our security in the hands of Arabs, and that the Arabs will look after us," he said. "That the Arabs will look after us! We'll give them part of the country, and they'll look after us. Who's ever heard of such a thing"
Israel's opposition politicians were predictably outraged by the remarks. But it is Mr Arafat, and other Arab leaders, who may draw more significant long term conclusions from this glimpse of Mr Netanyahu's fundamental mindset. Reuters adds: Meanwhile, Israeli troops yesterday beat a Palestinian unconscious in the West Bank town of Hebron, home to 100,000 Palestinians and 400 Jewish settlers. Palestinian journalists who arrived were attacked by Jewish settlers, witnesses said.
Mr Sabber Abu Sinena (27) said he was on his way to market when paramilitary border policemen asked to see his identification. First four, and then as many as 10 of them began to beat him with their guns, he said.