Israelis, Palestinians hold first direct negotiations on Church of the Nativity

BETHLEHEM, West Bank — The first direct negotiations to end a three-week stalemate between Israeli forces and armed Palestinians holed up in one of Christianity's holiest shrines ended yesterday without an agreement.

Palestinians had been optimistic for a quick resolution. But Bethlehem Mayor Hanna Nasser, who participated in the talks, said the discussions ended without a deal. The two sides are to meet again today.

"It was important, and we agreed to continue discussions," he said, without saying if progress had been made.

Prime Minister Ariel Sharon, meanwhile, told an American Jewish group he believed a U.S.-sponsored international peace conference could end Mideast hostilities. He credited the Israeli incursion into the West Bank with creating the climate for a settlement.

"Regional peace is within our grasp," Sharon said. "I am optimistic about the future."

With the Israeli incursion significantly scaled back, gruesome street scenes played out as masked Palestinian militiamen summarily executed fellow Palestinians accused of collaborating with Israel. Three men were shot dead in Hebron, and two of the bullet-riddled bodies were strung up by a mob.

The killings were carried out to avenge the Monday night Israeli killing of Marwan Zalloum, commander of the Al Aqsa Martyrs' Brigade in Hebron.

"The fate of all collaborators will be like this," a masked militiaman, wearing an Al Aqsa headband, said before he and six others sped away.