Jerusalem: Israel and Palestinians have resumed talks on economic hardships suffered by Palestinians due to economic blockade and incursions by the Jewish state with Tel Aviv maintaining that it would take measures to ease their sufferings only after terror attacks were stopped.

The meeting between Israeli Foreign Minister Shimon Peres and Palestinian Authority Minister Saeb Erekat took place on July 20 night after talks had been called off last week following recent bombings against Israel.

Erakat urged Israel to end occupation of Palestinian cities stressing the Palestinian Authority could not stop terror attacks unless Tel Aviv vacated them, Israel Radio said.

After the high-level meeting, which lasted more than three hours, Palestinian delegation expressed determination to rebuild the Palestinian Authority's governmental structure, English daily 'Ha'aretz' quoted Peres' office as saying.

He outlined steps Israel is willing to take to alleviate conditions in the West Bank and Gaza Strip while emphasizing that terror was hampering its efforts, the daily said. He said 7,000 work-permits for the Palestinians would be provided if the attacks were stopped.

The two sides discussed ways to remove economic problems suffered by 7,00,000 Palestinians in the West Bank cities reoccupied by the Israeli Army a month ago to arrest those behind attacks against Israeli civilians.

Israel had called off talks after Palestinian attackers ambushed a bus outside a Jewish settlement in the West Bank, killing seven people. Later, two suicide bombers killed three people in the twin Tel Aviv bombing.

Peres was accompanied by Israel's Minister Dan Naveh (Likud), Foreign Ministry Director-General Avi Gil, co-ordinator of government activities in the West Bank and Gaza, Major General Amos Gilad, and Finance Ministry Director-General Ohad Marani.

The Palestinian delegation led by Saeb Erakat, included Finance Minister Salam Fayyad, Interior Minister Abdel Razzek al-Yehiye, Minister of Economy, Trade and Industry Maher al-Masri and Minister of Civil Affairs Jamil Tarifi.

The Palestinian economy is in tatters after 22 months of fighting and recently by frequent curfews and blockades since Israeli troops entered seven of eight West Bank cities, nearby refugee camps and villages following suicide bombings that killed 26 people in Jerusalem on June 18 and 19.

Earlier, an estimated 1,25,000 Palestinians crossed into Israel daily for employment before fighting erupted in September 2000. Israel has blocked most Palestinians from entering the country in the wake of terror attacks.

PTI