Israeli Vice Premier Shimon Peres met with Palestinian Minister of Civilian Affairs Mohammed Dahlan on Wednesday night in Tel Aviv to discuss economic and civilian cooperation in the expected Israeli pullout from Gaza.

It was the first meeting between the two sides after a suicide bomb attack which killed five Israelis and wounded dozens in Tel Aviv last Friday, Israel Radio said.

During the two-hour meeting, Peres told Dahlan that the security and financial situation for the Palestinians living in the Gaza Strip will improve after Israel withdraws all settlements from the area under the disengagement plan.

Dahlan said security and hope must be restored to both sides.

The Palestinian minister also urged Israel to allow a better movement of the Palestinians and goods by removing roadblocks and barriers in the occupied territories.

The two officials also reportedly discussed the possibility of transferring functioning businesses and greenhouses in Gaza to the Palestinians after the evacuation.

In addition, the talks covered the establishment of a joint committee on issues relating to the disengagement plan, which envisages removal of all 21 settlements in Gaza and four of 120 in the northern West Bank by the end of this year.

The radio said Peres had earlier informed Israeli Prime Minister Ariel Sharon that he planned to meet with members of the Palestinian leadership.

In the wake of the Tel Aviv suicide attack, Israel decided to freeze all peace talks with the Palestinians, delay transfer of five West Bank towns to the Palestinian National Authority and meetings on further release of Palestinians in Israeli jails.

(Xinhua News Agency March 3, 2005)