Arab concern at US peace plan

Yasser Arafat was looking for support

Arab foreign ministers have rejected a key part of the latest US peace proposals at a meeting with Palestinian leader Yasser Arafat in Cairo.

The Arab League says it believes the Palestinians' right to return to their homes in what is now Israel is "sacred".

Reported American proposals

Israel to concede sovereignty over much of East Jerusalem and the Al-Aqsa mosque

Palestinians give up the right of return for Palestinian refugees

Palestinian state on 95% of the West Bank and 100% of the Gaza Strip

Mr Arafat had been sounding out the ministers on the American suggestion that the Palestinians give up that right in exchange for control of parts of Jerusalem.

Unless the issue can be resolved, there is no chance of peace with the Israelis.

The Palestinian leader gave his conditional acceptance to the US plan at talks with President Clinton on Tuesday. But the Arab reaction gives him little room for manoeuvre.

However, on his return to Gaza, Mr Arafat said he still hoped for a final peace agreement mediated by Mr Clinton before the latter left office on 20 January.

Lebanese rejection

"Lebanon has totally rejected the idea of resettling the Palestinian refugees, and insisted on the right of the Palestinians to return. We believe that this is a sacred right," Egyptian Foreign Minister Amr Moussa said after the talks.

The refugee population has swollown to more than 3.7 million since 1948

He also said no concessions could be made on east Jerusalem.

Mr Moussa, who was speaking as chairman of the meeting, said the stand backed reservations Mr Arafat had given to Mr Clinton.

For his part, the Syrian foreign minister reportedly said the US plan should not even be discussed, and the Arab League should instead concentrate on supporting the Palestinian uprising.

Before the talks, Mr Arafat held discussions with the Egyptian President Hosni Mubarak - who has often acted as a mediator between the Palestinians and the Israelis.

Washington talks

An American spokesman said on Wednesday that both the Palestinians and the Israelis had accepted President Clinton's proposals as the basis for negotiations - albeit with some reservations.

Q: Can you reach a final settlement before Clinton leaves office?
A: We hope so... according to the promise by President Clinton to make every possible effort before the period ends

Yasser Arafat to journalists

Israel is sending an envoy - the Israeli chief of staff, Gilad Sher - to Washington to handle the discussions, and the White House said the Palestinians were expected to follow suit in the next few days.

The Israelis have said the Palestinian leadership must work to end "terrorism" in the area before peace talks can resume.

"If we perceive in the next few days that the Palestinians are making an effort in the fight against terrorism, then we can return to the negotiating table," Foreign Minister Shlomo Ben Ami said on public radio on Thursday.

"Arafat has said that he wants to finalise talks with Israel during Clinton's mandate, but has been slow in giving a response," he added.

Israeli troops razed a large stretch of Palestinian farmland in Gaza

Top Israeli, Palestinian and American security officials are due to meet in Cairo on Sunday to try to reduce the violence, a senior Palestinian official has told the French news agency AFP.

More than 350 people, mostly Palestinians, have been killed since the Palestinians launched their uprising in September.

There were no reports of clashes as the diplomacy continued, but members of 10 Palestinian families in the northern Gaza Strip said they had been made homeless after Israeli army bulldozers razed houses and 75 acres of farmland near the Jewish settlement of Dugit.

The army said it had only demolished a toolshed used for shelter by Palestinian gunmen. The area witnessed a bomb explosion on Tuesday and a Palestinian farmer was killed when troops subsequently opened fire.