American mediator Gen. Zinni has accepted Prime Minister Sharon\'s proposal for a three-way meeting involving himself, Zinni, and a senior PA official other than Yasser Arafat. The meeting will take place today, and the sides will be called upon to announce an immediate cease-fire. Sharon also suggested that the cease-fire declaration be followed right away by the implementation of the Tenet Agreement. The Palestinians, however, demand the withdrawal of IDF forces from all of Area A before a cease-fire is announced. The IDF currently remains only in Bethlehem, Beit Jala, and around Ramallah. Foreign Minister Shimon Peres said last night that the army has stopped all activities throughout Yesha, except those against \"ticking time-bombs.\"



The weekly government meeting this morning deals with two major issues: The contacts with PA leaders and Gen. Zinni, and the formation of a Board of Governors for the Bank of Israel. Bank Governor David Klein is strongly against the latter proposal.