Arafat: Won't be dictated to

Arafat Rejects Israeli Security Demands

"We reject any dictates or any conditions," said Mr Arafat in self-ruled town of Nablus. He stressed that he was ready to co-operate with Israel on security issues, but warned that the peace process was at a "dangerous turn."

Mr Arafat pointed to the arrest by PLO forces on Saturday of three Palestinian car thieves who murdered an Israeli taxi driver in Jericho as proof he was working with Israeli police.

"We implement Palestinian law but not the dictates. This is the main basis we had agreed upon with the Israelis and the Americans before," he said.

His comments came as the US Mideast peace envoy, Dennis Ross, ended a mission aimed at restoring security cooperation between Israel and the PLO after the Jerusalem bombing, which killed 16 people, including the two bombers.

The Palestinian Authority has appealed to the international community to force Israel to lift the restrictions it imposed on Palestinian areas after the bombing. It said continuation of the blockade could result in famine and shortages of medicine.

The United States has criticised Israel for maintaining a freeze on transfers of tax revenues its owes the Palestinians.

But Israel says the restrictions will remain in force until the Palestinians act against militants opposed to Israel.

Israel sealed off the West Bank and Gaza and froze financial transfers it owes the Palestinian Authority under an economic protocol after the Jerusalem attack. Palestinians have condemned the sanctions as collective punishment.