Jerusalem ? Israeli troops took down their Star of David flag, removed a roadblock and handed the town of Jericho to Palestinian control Wednesday, boosting Mideast peace efforts and sending a message to Palestinians that ending the violent uprising is starting to pay off.

However, a last-minute argument over formal handover documents reflected the distrust that has built up during four years of conflict.

Symbolic steps turned practical as Israel removed one of three roadblocks around the isolated desert oasis, allowing free travel to the rest of the West Bank. Israeli soldiers stopped checking cars entering Jericho — a boost for the town’s economy and for Palestinian leader Mahmoud Abbas, who needs to show he can get results as he seeks to renew the peace process with Israel.

Violence has dropped since Abbas and Israeli Prime Minister Ariel Sharon declared a cease-fire at a Feb. 8 summit in Egypt. Abbas on Wednesday was in Cairo trying to persuade militants from Islamic Jihad and Hamas to formally join the truce.

News and pictures from Jericho, where residents welcomed Palestinian police in clean, dark green uniforms and red berets after Israeli soldiers packed away their flags and weapons, could only strengthen Abbas’ argument that violent resistance has played itself out, and agreements achieve more.

Meanwhile, Hamas swept to victory in elections for the Hebron University student council, a sign of the hold the Islamic group has ahead of parliamentary elections in July.

Also in Hebron, Jewish settlers clashed with Israeli police as they smashed a contested building in the volatile town, underlining that Israel will have difficulties controlling its own extremists during its planned evacuation of the Gaza Strip and part of the West Bank this summer.

But in Jericho, the atmosphere was optimistic.

“This is excellent, very encouraging,” said Jack Hattar, 30, who owns a general store in the town. “Jericho has always lived off outsiders, and now they’ll start coming back more regularly, and when they do, business and life will improve for everyone.”

Jericho will remain off-limits to Israelis for the time being, Israeli commanders said. Before the outbreak of fighting, thousands of Israelis would visit the town on weekends, many drawn by a luxury hotel and casino.

Palestinian police set up their own checkpoint near the casino Wednesday to turn away Israelis.

Israel also kept control of a main highway running through Al Awja, a village north of Jericho, while ceding the village itself to the Palestinians.

Palestinian police promised to confiscate illegal weapons and hand back stolen Israeli cars, according to the handover agreement. Israel pledged to consider removing the remaining two roadblocks in a month if the Palestinians fulfill their security obligations.