The matter had been left in limbo since Israeli ground troops withdrew from the Palestinian territory in September and has provoked criticism from the international community’s envoy for the pullout, James Wolfensohn.

“The ministers dealing with the matter have given their green light to the presence of European observers who will be charged with supervising the crossing of travellers to Rafah,” said an aide to Prime Minister Ariel Sharon.

“The checking will be carried out by the Egyptians and the Palestinian Authority on the Egyptian side of the terminal, while the European observers will be present on the Palestinian side and will keep us informed,” said the official on condition of anonymity.

Close-circuit cameras would also be installed on the Palestinian side to allow the Israeli authorities “real time” knowledge of events, he added.

The Rafah crossing, the only exit from Gaza that bypasses Israel, was closed on September 7, ahead of Israel’s pullout from the territory five days later.

Last Wednesday, Israel and Egypt reached an agreement that people moving through Rafah would be controlled by Egyptian and Palestinian officials, under direct European observation and Israeli camera surveillance.

Israeli Defence Minister Shaul Mofaz said that people would cross into Egypt directly through Rafah, while goods would have to transit through Israel first via the terminal of Kerem Shalom on the three borders.

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