Israel has allowed ten truckloads of clothes and shoes for Palestinian traders into the Gaza Strip for the first time since Hamas seized control of the territory three years ago.

Mr. Cheney also said that he and senior Palestinian leaders had discussed a proposed reconciliation agreement between Mr. Abbas's Fatah movement and Hamas militants who control the Gaza Strip.

Its goal is to make the moderate Mr Abbas more attractive to Palestinians than the Hamas party, which rejects full peace with Israel and which took control of the Gaza Strip last summer.