Israel withdrew from 6.1 percent of the West Bank on Tuesday, giving Palestinian leader Yasser Arafat a stronger hold over about 40 percent of the disputed territories as the two sides headed into talks on a final peace treaty.

The transfer helps create the territorial contiguity Arafat needs for future statehood. Palestinians celebrating the withdrawal said the handover brought them one step closer to Jerusalem, claimed by both sides as a capital. The Palestinians had demanded suburbs of Jerusalem for the withdrawal that was originally to have taken place Jan. 20, but Israel refused. The dispute stalled negotiations for five weeks. A compromise gave the Palestinians villages near but not bordering Jerusalem. The withdrawal from lands abutting the Palestinian cities of Hebron, Ramallah and Nablus solidifies Arafat's control over key parts of the West Bank. In Beitunia, small crowds greeted jeeploads of Palestinian police who rolled into the new territories, firing their rifles into the air in celebration. Palestinian and Israeli negotiators resumed talks near Washington on Tuesday over a framework agreement for a final peace treaty. The framework is due in May and the final treaty in September. Among issues on the table are Jerusalem, borders, Palestinian refugees and Jewish settlements.