THE Israeli Prime Minister, Mr Benjamin Netanyahu, insisted yesterday that he had not suspended peace talks with the Palestinians but demanded that they fight terrorism if the process was to continue.
"I'm not suspending talks, because our people are meeting their people," Mr Netanyahu said. "I am putting the first condition for peace on the table. I want them to start fighting terrorism as they have promised." The Prime Minister was speaking two days after an Islamic suicide bombing in Tel Aviv killed three Israeli women and injured scores of others.
Mr Netanyahu convened his inner cabinet earlier yesterday for several hours to discuss the situation, as senior officials indicated that political talks with the Palestinian Authority could be suspended.
"There has to be a complete renunciation of terrorism" Mr Netanyahu said of the Palestinian President, Mr Yasser Arafat's government. "They have not fulfilled that promise.
Israeli and Palestinian security chiefs set up a "hot line" yesterday in hopes that improved coordination might ease tensions following the suicide bombing of a crowded cafe on Friday in central Tel Aviv.
The Islamic Resistance Movement (Hamas), which claimed responsibility for the bombing, has warned it will carry out further attacks over Mr Netanyahu's decision to begin construction this week of a new Jewish settlement in, annexed Arab east Jerusalem.
The Israeli army has arrested 37 Palestinians in the West Bank since Friday. "These people are suspected of having had links with the terrorist perpetrator of the attack, and will be interrogated" a military spokesman said.
In the Palestinian territories sporadic but violent protests over the settlement continued though at a lower level than during the three previous days.
Mr Netanyahu has accused Mr Arafat of opening the door for Friday's attack by easing the pressure on radical Islamic groups like Hamas.
General Moshe Yaalom head of military intelligence, yesterday reiterated allegations that violent street protests by West Bank Palestinians in recent days were fomented by Palestinian officials to pressure Israel. Mr Arafat has denied these charges. While the fate of "diplomatic efforts" to protect the peace process remained clouded yesterday, top Israeli and Palestinian security officials were meeting in a bid to ease tensions on the Israel's Internal Security Minister, Mr Avigdor Kahalani, and the Palestinians West Bank security set up a "Hot line" between their offices to co ordinate security actions.
"We talked about the latest terror act and the necessity to avoid any action that jeopardises the peace process," Mr Kahalani said. "We are eager to establish a channel of communication between us and also to establish talks and meetings on a regular basis." But as the two men spoke, stone throwing protesters continued to clash with Israeli soldiers and dozens of Palestinians in Hebron stoned troops who responded with tear gas.