THE LACK OF ARAFAT MAKES ALL THINGS POSSIBLE:

In Bethlehem, a Soft Stirring of Optimism: As violence between Israelis and Palestinians eases, the city dares hope that it can revive the tourism industry that once sustained it. (Laura King, December 25, 2004, LA Times)

In this Christmas season of hopes and fears, the little town of Bethlehem finds itself suspended somewhere between the two.

With lamplight glowing softly on ancient stones and the musty fragrance of incense penetrating the damp winter chill, Palestinian Christians, foreign dignitaries and a smattering of tourists celebrated midnight Mass on Friday in the basilica built on the spot where tradition says Jesus was born.

The holiday is marked by its usual disorienting Holy Land melange of army roadblocks and candlelight carols, twinkling lights and olive-drab armored vehicles.

But there has been some cause for tentative optimism this year: the dramatic easing of the day-to-day violent conflict with Israel, coupled with greater Palestinian aspirations to democracy in the wake of Yasser Arafat's death.