THOUSANDS of joyful, flag-waving Palestinians went on the march through the streets of Hebron yesterday in anticipation of the "liberation" of the disputed city from Israeli occupation.
The catalyst for the celebrations had been the last-minute cancellation by Benjamin Netanyahu, the Prime Minister, of a trip to America so that he could oversee the closing stages of negotiations with the Palestinians over pulling the Israeli army out of Hebron.
Israeli officials said a deal was a few days or even hours away. But Yasser Arafat, the Palestinian leader, was playing tough, saying that Israel was still making unacceptable demands.
Uniformed schoolchildren mingling with drum and bagpipe bands took over the main street of the West Bank city chanting "Long live Palestinian Hebron" in front of a huge crowd, convinced that the "liberation" was imminent.
In a symbolic foretaste of the city's possible future, Israeli soldiers were joined by plainclothed Palestinian security agents in keeping an eye on the celebrations.
"Independence Day is our day of freedom," read one banner carried by the marching children. "Jerusalem is the capital of Palestine and Hebron is a jewel in the crown of Palestine," read another.
After weeks of negotiations, and despite September's gun-battles between Israeli and Palestinian security forces, it seemed that the renegotiated agreement would be different from the deal signed by the previous Labour government and denounced by Mr Netanyahu.
The accord calls for most of Hebron to be handed over to Palestinian forces, while Israel retains a section of the city to ensure the security of some 500 Jewish settlers.
By pulling out of Hebron, Mr Netanyahu will try to signal to Palestinians and the international community that he is committed to peace talks not just in words, but also in deeds. The decision, however, could throw his Right-wing coalition into ideological turmoil. The government would not only be taking concrete steps to continue the reviled accords on Palestinian autonomy, but it would also be relinquishing control of most parts of the holy city of Hebron and destroying the settlers' dreams of expanding beyond their enclaves into the rest of the city.
Only a few weeks ago, Mr Netanyahu told supporters: "If we don't have the right to live in Hebron, we don't have a right to live anywhere in Israel."
Right-wing women have been holding daily demonstrations outside the home of Mr Netanyahu, known by his nickname of "Bibi".
More ominously, death threats similar to those issued against the assassinated Prime Minister, Yitzhak Rabin, have started to appear on the walls of Jerusalem.
"Bibi, you are following in the footsteps of the traitor Yitzhak," read one slogan. "Bibi is bad for the Jews," said another.
Settlement leaders were holding an emergency meeting last night to discuss protest action against the Hebron redeployment. They accused Mr Netanyahu of negotiating an even worse deal than Labour.
The National Religious Party, a key partner in Mr Netanyahu's coalition, has reserved the right to vote against the agreement if it is not satisfied with the security provisions. But it is likely that most ministers will support the accord as the only way to restore the government's international standing. In any case, the opposition Labour party said it would provide a parliamentary "safety net" if Mr Netanyahu's government breaks up. In Hebron itself, the army long ago prepared to depart. It is ready to hand over its two remaining positions in a matter of hours, if necessary. But instead of moving towards peace with the Palestinians, commanders were preparing for war. New armoured sentry boxes and electronic gates have been placed at sensitive points in the Israeli sector. On Wednesday night, soldiers conducted an exercise simulating a major attack on Jews.
In a city where the streets are haunted by the ghosts of past massacres - the murder of 67 Jews in 1929 and the killing of 29 Arabs in 1993 - both sides fear something will happen in the coming days. Israel has placed one Jewish extremist in administrative detention, while undercover Palestinian intelligence agents are reported to be trying to round up weapons in Palestinian hands.
The main sticking point in the talks is Israel's demand for the right of "hot pursuit" into the Palestinian zone. It also wants arrangements to prevent Palestinians from using the Abu Sneineh hill, overlooking the Jewish enclaves, as a sniping position.
For most Israelis, the departure from Hebron is taken almost for granted. But there is still great uncertainty over "the day after".