The Gaza-Egypt border has been reopened with a festive ribbon-cutting, a milestone for the Palestinians who for the first time are taking control of a border crossing without Israeli veto powers and gaining some freedom of movement.

The opening on Friday is being seen as a step towards Palestinian independence and a boost to Palestinian leader Mahmoud Abbas.

The Rafah terminal on the Gaza-Egypt had been closed by Israel as its troops withdrew from the Gaza Strip in September.

After two months of international mediation, Israel agreed that the Palestinians would run their side of the border, with the help of European monitors.

The crossing will open to Palestinian travellers on Saturday morning, initially for four hours a day until the European monitors get settled. After the test period, opening hours will be expanded.

"From this moment, we feel we are free," said Fathia Najar, 55, one of a group of Palestinian travellers waiting near Rafah to cross the next day. "Before this, we lived in a jail."

Before the Israeli pullout, travel through Rafah was often difficult. The terminal was repeatedly closed on security grounds, and at times travelers waited for days to get through.

Heavy security ringed the terminal during Friday's ceremony, with police setting up roadblocks on access roads. Police officers also lined the main north-south road from Gaza City to Rafah.

The border deal backs Abbas' message that Palestinians can only gain independence through negotiations with Israel. Hamas says such talks are pointless and that it drove Israel out of Gaza by force.

Despite the Abbas-Hamas rivalry, Hamas leader Mahmoud Zahar attended the opening ceremony. "Our presence here does not mean we support this agreement," the Hamas leader said.

Moment of silence

The opening ceremony was held under a large tent. After Muslim prayers, guests stood for a moment of silence for Palestinians killed in fighting with Israel.

In preparation for the opening, the terminal was refurbished. It got a new coat of paint, workers replaced the ceiling tiles and installed new lighting.

Rows of blue and orange chairs filled the arrivals and departure halls, along with batteries of computers, X-ray machines, metal detectors and security cameras.

The key dispute between Israel and the Palestinians had been over whether Israel should get real-time surveillance videos from Rafah and be allowed to veto the entry or departure of some passengers.

In the end, Israel dropped both demands.

Initially, 20 EU monitors will supervise Rafah operations, said Julio Delaguardia, spokesman for the contingent.

The first group of monitors comes from Italy, Denmark, Romania and Luxembourg. In coming week, the group will grow to 70, with additional monitors from France, Spain, Portugal, Sweden and Finland.

PHOTO CAPTION

An elderly Palestinian stands outside the Rafah crossing with Egypt while waiting to cross the Rafah border November 25, 2005. (REUTERS)