NEW YORK - Palestine President Yasser Arafat has slipped back to terrorism, says Israeli Prime Minister Ariel Sharon.
"It is clear that the main obstacle to peace today - and really I am sorry to say it - is Chairman Arafat, who has reverted to terrorism," Sharon told American Jewish leaders in New York last night, wrapping up a two-day US visit.
He also warned Washington that any official invitation to Arafat could spur militant attacks unless the Palestine President called for an end to nearly six months of violence in the West Bank and Gaza.
And Sharon bluntly warned the United Nations that sending an observer force to protect Palestinians from Israeli soldiers could escalate the violence.
The Israeli leader held talks with US President George W. Bush on Wednesday and UN Secretary-General Kofi Annan yesterday.
Earlier, a US-led investigative committee toured the troubled Gaza Strip and heard Palestinian complaints of children and ambulances hit by Israeli bullets. Sharon told Annan he would meet the committee this weekend but expressed concerns about its work, sources close to the talks said.
"I have no intention to isolate Yasser Arafat," Sharon said on television while in New York.
"I told the Americans in a very clear way I don't intervene in their decision of who to invite. I said, 'It's your decision.'
"But I know that the thing will look ... as if terror pays off and it could definitely [have an] influence on a worsening of terror activities in the future," said Sharon.
US officials say there are no immediate plans for an Arafat visit.
Sharon told Jewish leaders that in his talks with Bush he had made certain to outline the Israeli position on issues so there would be no misunderstandings.
UN officials said Annan urged Sharon to ease restrictions on Palestinians and questioned plans to expand a Jewish settlement known as Har Homa.
Annan also said it would be dangerous to let the Palestinian Authority collapse.
Since a Palestinian uprising flared against Israeli rule last September, Israel has imposed severe restrictions on the movement of people and goods in the West Bank and Gaza, ruining the Palestinian economy.
Israeli spokesman Raanar Gissin quoted Sharon as saying he was prepared to ease the restrictions, including those which prevent Palestinians from working in Israel proper.
"We would even like to do more," Sharon said.
"But I have a problem here. We will continue with easing the restrictions, but at the same time we will use a heavier hand toward terrorists, those who send them and those who abet them."
Sharon told Annan he would oppose any UN observers in the Palestinian territories. He feared that "terrorists" might shelter behind them and Israeli soldiers could then clash with observers, said Israeli and UN sources.
The UN Security Council is mulling a resolution on such a force, with Europeans seeking a compromise to avoid a US veto before an Arab summit begins in Jordan next week.
- REUTERS
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Arafat a terrorist again says Sharon
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