[Daryn Kagan, Cnn Anchor:] We're also following a developing story out of the Middle East this morning. Just about two hours ago, a car bomb exploded near a crowded outdoor market area in the heart of Jerusalem. The bombing comes as Israeli and Palestinian leaders prepare to announce a deal to actually end a month of street fighting. For the latest on the attack and its implications, we go to Jerusalem bureau chief Mike Hanna. Mike, hello.
[Mike Hanna, Cnn Jerusalem Bureau Chief:] Well, Daryn, at this particular point, it is being confirmed that two people were killed in the explosion, that police say was caused by a explosive device placed in a car near the Mahane Yehuda market in the center of Jerusalem. This a very popular venue, and one that has been the target of suicide bombings in the past. At least nine Israelis have been injured in the blast, but none of them seriously. The exact identity of the two dead not known at this particular point, although the chief of the Jerusalem police says that both the dead appear to be Israeli citizens. Well, the bombing came on a day on which there appeared to be an agreement reached between Israel and the Palestinian Authority to reduce the level of violence, and indeed to create a calm atmosphere in which attempts could be made to resume the flagging peace process. In the course of this day, the leaders were due to make public statements on the media in their respective areas, calling for an end to the violence, and pledging themselves to creating this atmosphere of calm. Well, these statements were never made, they were delayed and they were delayed, and then come the bomb blast in the center of Jerusalem. However, the Palestinian Authority president, Yasser Arafat, has released a statement calling for calm, calling on Palestinians to observe only peaceful protests. Israeli Prime Minister Ehud Barak has, within the last few minutes, released a statement in which he says that it is a very serious attack against us. He says, in reference to the bomb blast in the Jerusalem market, he blames Hamas and Islamic Jihad militants. And he says the Palestinian Authority must accept the responsibility for the blast, as it is, he says, the Palestinian Authority that released Hamas and Islamic Jihad members in the course of recent weeks. So still, from Israel, an absolute assumption of blame, holding Islamic militants responsible for the blast. But there has be no claim of responsibility from any area. There has been no confirmation as to the identity from the police sources of who was responsible for the blast. It does appear, at this particular point, that both sides, according to Israeli officials, and according to the statement we have seen from Mr. Arafat, that the agreement that was reached earlier in the course of the day will still be observed, despite the attack or the bombing that occurred in Jerusalem in the course of the afternoon. In the next few hours, we will see if this is the case. In the course of the day, there had been signs that the agreement had reduced the level of conflict on the ground. Israeli tanks were seen withdrawing from areas that they had occupied in Palestinian territories. At the same time, Palestinian police were seen preventing demonstrators from attacking the Jewish settlements and Israeli outposts within Palestinian territories. So there had been signs that an agreement was having an effect on the ground. But on the dark side, too, yet another Palestinian killed in a clash with Israeli security forces in the course of the morning; another Palestinian, who had been wounded in the course of Wednesday's events, died in the course of the day. So, at this point, the situation still tenuous. Darkness falling here in Jerusalem on a day that had begun with a glimmer of hope that the conflict could end Daryn.
[Kagan:] Mike, as you said, it did start with a glimmer of hope, but does this latest violence bring into question whether the leaders that are brokering these deal actually have the power over their people to enforce them, and to calm the street violence?
[Hanna:] Well, that is the question that remains to be seen. The Israeli authorities had, for a number of weeks now, been warning of a possible bomb attack in the civilian areas of Israel. This warning followed what they said was the unjustified release of a number of Hamas and Islamic Jihad militants by the Palestinian Authority. And this warning had been in fact for a number of weeks now. So this had been an event that the Israeli authorities had foreseen, saying that the incessant round of conflict, together with the release of militants in Palestinian territories would result in some kind of bomb attack against Israeli civilian targets. However, for their part, the Palestinian Authorities have continued to maintain that the incessant round of conflict has been because of the actions of the Israeli government, in particular because of the actions of its security forces and the ongoing presence in Palestinian territories of the Israeli security forces, and of the Jewish settlements that the forces are there to protect. So each side continues to apportion blame on the other. And we have already, from the Israel's side, an absolute assumption that this bombing blast was carried out by Islamic militants, although there has been no criminal judgment, as yet, as to exactly what did cause the blast which led to deaths of at least two people unidentified people at present. But the situation does remain that it appears that both sides have committed themselves to observing the agreements that were reached in the course of the day. Whether they can enforce their followers on the ground to also observe that agreement, well that is something the coming hours and indeed the coming days will show Daryn.
[Kagan:] Mike Hanna in Jerusalem. Mike, thank you very much Bill.
[Bill Hemmer, Cnn Anchor:] That explosion reverberated back at to the White House, which had been encouraged by the earlier news today that Palestinian and Israeli leaders were implementing the U.S.- brokered cease-fire. For the latest on that from the White House and the view there, Kathleen Koch, now, with us live. Hello Kathleen.
[Kathleen Koch, Cnn Correspondent:] Hi, Bill. Well, the White House is hoping that the renewed opportunity for peace wasn't shattered this morning in Jerusalem. White House press secretary Jake Siewert says that President Clinton is condemning the violence, but that the facts of this bombing still remain unclear. Now, the White House is staying in constant contact with both sides to be certain that this doesn't derail this fragile truce. And, indeed, they are keeping their eyes on the prize here: that is peace in the Middle East. The White House is under no illusions that this process would be easy; though, earlier, officials had indeed been quite encouraged by the fact that this truce was reached between the two parties themselves with no broker not the United States, not the United Nations involved. One official is saying that this is the way the process is supposed to work. Now, President Clinton's invitation to Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat remains in effect; and the belief here is that such a meeting in Washington with the president could still be helpful. And the hope was that this truce could, perhaps, give renewed impetus to that meeting and improve the chances of some sort of concrete results out of a meeting with the president. But, clearly, until the concrete facts behind this bombing emerge, such hopes of a meeting, such hopes of real progress for peace may have to be put on hold Bill.
[Hemmer:] All right, Kathleen; Kathleen Koch at the White House, thanks.