Palestinians arrest two Islamic Jihad members

Family and friends gather at the grave of Smadar Levy, 23, one of four Israeli women killed Sunday in Hadera.

TEL AVIV, Israel (CNN) -- The Palestinian Authority said Monday it has arrested two members of the militant group Islamic Jihad and issued a warrant for one of its leaders after the group claimed responsibility for four Israeli deaths.

Meanwhile, Israeli, Palestinian and U.S. mediators met late Monday to discuss what steps would follow the pullout of Israeli forces from the West Bank towns of Bethlehem and Beit Jala, a process completed earlier in the day.

Saeb Erakat, chief Palestinian negotiator, said Monday the Palestinians are committed to fulfilling their security obligations under the pullout agreement reached with the Israelis.

"We're going to continue exerting every possible effort to ensure that the cease-fire is contained," Erakat said.

Funerals were held Monday for the four Israeli women killed Sunday in Hadera, outside the West Bank, in a drive-by shooting.

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Their deaths and the death of an Israeli soldier in another drive-by shooting near the West Bank border just north of Baka al Garbia almost derailed the pullout, which began on Sunday. The soldier also was buried Monday.

The Palestinian Authority said it arrested Iyad Elhasmi and Mohammad el Hawajeh and issued an arrest warrant for Abdullah Alshami as a result of the violence.

The two gunmen responsible for the women's deaths were shot and killed by a plainclothes police officer, police said. The Palestinian leadership condemned the shooting attack in the Israeli coastal city, Palestinian Authority sources said.

A Palestinian group linked to Palestinian Authority President Yasser Arafat's Fatah movement claimed responsibility for the soldier's death, saying it was in retaliation for the killing of one of its members in recent West Bank clashes.

Israel moved into six Palestinian towns, beginning with Bethlehem on October 18, after the killing of Israeli Tourism Minister Rehaven Ze'evi. Israeli forces remain in four areas.

Raanan Gissin, adviser to Israeli Prime Minister Ariel Sharon, told CNN Monday the Israelis see the pullout from Beit Jala and Bethlehem as "a test case" for possible future pullouts.

"I think the important thing to emphasize here [is] that as long as there is reciprocity, as long as both sides comply with the agreement, then we can move forward," Gissin said.

Israel's withdrawal originally was for Saturday but was suspended in the wake of an outbreak of shooting in Bethlehem.

No violence was reported there or in Beit Jala Sunday. The withdrawal came after a trilateral meeting on Friday.