UNITED NATIONS, Feb 26: In what appeared to be a significant shift in strategy, a draft resolution circulated by Arab envoys at the United Nations Security Council on Monday dropped provisions calling for outside monitoring, a demand that was certain to bring a US veto.

The move came on the eve of an open debate on the Middle East crisis.

The draft also appeared to give a nod to a Saudi peace initiative that has been welcomed by Palestinians and drawn cautious praise from Israel and the United States.

The proposal floated by Crown Prince Abdullah, the de facto Saudi ruler, calls on Arab states to recognize Israel in return for a full Israeli withdrawal from lands occupied in the 1967 Middle East war.

US Secretary of State Colin Powell on Monday called the proposal “an important step” that he hoped would be fleshed out in the weeks ahead.

An earlier draft had called for a UN Security Council mission to the region and outside monitoring in the West Bank and Gaza — measures US officials say would trigger a veto as Israel has rejected any outside intervention except by its closest ally the United States.