Israeli Foreign Minister Shimon Peres and PLO leader Yasser Arafat hope to initial the main points of an agreement on the expansion of Pal-es-tin-ian self-rule in the West Bank when they meet later on Thursday, officials from both sides said.

But the two men must still overcome at least one key dispute at their meeting in this Egyptian Red Sea resort."There is a possibility to agree on some central issues which will promote the negotiations," said an Israeli official who refused to be identified.

"These issues might be initialed by the two leaders today, and we will need at least another two weeks to negotiate in committees and to draft the comprehensive agreement," he told Reuters.

Arafat's spokesman, Marwan Kanafani, confirmed that the two men were striving to initial the main points of the deal followed by further talks.

"I expect after agreement on the main issues between the two leaders that working groups would need to work on all the issues further, taking into consideration progress achieved by Mr. Peres and President Arafat," he said.

Secretary of State Warren Christopher phoned Peres and Arafat on Thursday to encourage them in their efforts, said a U.S. official in Israel.

"He urged to move ahead. The longer it takes to reach an agreement, the harder it will become," the official said.

Peres and Arafat have have held talks in Taba since Monday to bridge gaps in an agreement on the next stage of Palestinian self-rule, which includes an Israeli troop withdrawal from Arab population centres in the West Bank and Palestinian elections.

Chief Palestinian negotiator Ahmed Korei said that Arafat had accepted Israel's proposal on the timing of a staged troop redeployment after Palestinian elections.

"We agreed that redeployments after elections will take place every six months instead of (the Palestinian proposal of) three," Korei told reporters.

Peres said the agreement still left uncertain the date for the final withdrawal.

"It depends when we shall start. If it will start right away it will be a few months earlier, if not it will be a few months later," he said.

Israel had wanted the pullout to be completed by July 1997, while the PLO is demanding it be completed by February 1997.

The concession still left a host of problems to be solved, among them water rights and security arrangements.

Palestinian self-rule was launched in Gaza and the tiny West Bank Jericho enclave in May 1994 under the terms of a 1993 Israel-PLO peace deal.

Its expansion in the West Bank was to have begun more than a year ago.

Israel and the PLO already have missed two previous deadlines for an accord.

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A PLO official said if Peres and Arafat agreed at their meeting on Thursday on a formula to cover the issue of Hebron and possibly other points, then there could be an initialing of main points of a draft agreement the same day.

The fate of Hebron, the only place in the West Bank where Jewish settlers live in the heart of an Arab city, has plagued negotiators throughout the talks.

Palestinians demand an Israeli troop withdrawal from Hebron when they redeploy away from other West Bank cities, but Israel is concerned for the security of the Hebron's 400 settlers.

Other disputes have centered on security arrangements in the village area, a timetable for the redeployment and access to scarce water supplies.

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