French President Nicolas Sarkozy and Palestinian Authority (PA) chairman Mahmoud Abbas are scheduled to announce a joint venture for a new industrial area in Bethlehem when the French President visits the PA on Tuesday. He is due to begin his three-day trip in Israel Sunday afternoon.

PA officials are counting on the project to employ 1,500-2,000 Arabs. President Sarkozy has expressed strong support for Israel but also has called for a freeze on development of Jewish communities in Judea and Samaria.