Israeli Prime Minister Mr Ariel Sharon has condemned the bomb attack on a bus in Jerusalem after making his first ever visit to the scene of a suicide bombing.
He made the unusual visit to the scene of the blast which has left at least 14 people dead and more than 40 injured.
He walked past a row of bodies and questioned what kind of state the Palestinians would create.
He said: "The terrible sights we have seen here are stronger than any words. It is interesting to know what kind of Palestinian state they mean. What Palestinian state?"
Witnesses say many school students were on the bus, which had its windows shattered and ceiling peeled back.
"This terrible thing that we see is a continuation of Palestinian terrorism, and against that terrorism we have to fight and struggle - and that is what we will do," Mr Sharon said.
But the Palestinian Authority has condemned the bombing and denied it was to blame.
"The Palestinian Authority condemns this attack and repeats its position of not condoning the killing of civilians, both Palestinians and Israelis," Palestinian cabinet minister Mr Saeb Erekat said on CNN.
PA