RAMALLAH, West Bank (AP):

Israel yesterday freed nearly 200 Palestinian prisoners, including a militant mastermind who had been jailed for three decades, in a confidence-building measure aimed at breathing new life into slow-moving Mideast peace talks.

US Secretary of State Condoleezza Rice, opening a new round of shuttle diplomacy, praised the Israeli gesture as a "sign of goodwill".

The freed Palestinians were greeted as heroes all across the West Bank. However, putting the celebrations in perspective, President Mahmoud Abbas and other Palestinians demanded that Israel release all 9,000 prisoners it is holding.

The prisoner release was not part of a larger peace deal. Instead, it was meant to bolster the moderate Abbas in his struggle against the militant Islamic Hamas, which overran Gaza last year and is threatening his position in the West Bank.

Hamas is holding an Israeli soldier and demanding freedom for hundreds of prisoners in exchange for him. Yesterday's release was meant to show that moderate Palestinian leaders can also achieve freedom for prisoners.