Israel is removing military checkpoints dividing the Gaza Strip into two sections, hours after US Secretary of State Mr Colin Powell urged it to lift its siege of the West Bank and Gaza Strip.
The army said it had cancelled a decision made on Friday, after a mortar attack against a Jewish settlement, to cut Gaza into two sections due to increasing humanitarian cases and requests for passage between the two parts .
The army's announcement came hours after Mr Powell met Israeli Prime Minister-elect Mr Ariel Sharon in Jerusalem and Palestinian President Mr Yasser Arafat in Ramallah during his first Middle East visit since becoming secretary of state last month.
Israel has cited security reasons for the closure of the Palestinian territories, home to three million Palestinians. Palestinians say the measures are choking off their economy, and brand them as collective punishment