Israeli tanks enter West Bank

Palestinians confront Israeli tanks

The Palestinian Authority's refusal to extradite terrorist suspects results in further military action from Israel. Can Yasser Arafat survive this latest crisis?

Israeli tanks and bulldozers have moved into the West Bank and three Palestinians, including a 10 year-old girl, are said to have died in shell-fire. Jon Manel reports.

It is unlikely that this is the final response to yesterday's murder of an Israeli Government minister by the Popular Front for the Liberation of Palestine.

Unprecedented pressure is being applied to Yasser Arafat to hand over those responsible, or stand condemned for harbouring terrorists.

The Palestinian Authority has declared that it will not respond to such an ultimatum. Indeed, one of Mr Arafat's advisers has accused the Israelis of planning to assassinate the Palestinian leader.

It is feared that Israel's insistence on Yasser Arafat's personal responsibility for harbouring terrorists will undermine any possibility of negotiating with him in future.

Furthermore, the demand that Mr Arafat hand over those accused of terrorist attacks puts the Palestinian president in an extremely difficult position. Attempts to clamp down on militants have already led to an erosion of the Authority's legitimacy amongst Palestinians.

We hear from Hassam Khatib, director of the Jerusalem Media and Communication Centre, and the editor of the Jerusalem Post, David Horowitz, assessing Mr Arafat's dilemma.

Also: On the day a new report is released into the impact of foot-and-mouth on the rural economy, the government has promised an extra £24m for rural businesses.

The Rural Recovery Co-ordinator, Lord Haskins, has called for more short-term aid for farmers. But in the long term, he tells us, farmers need to do more to help themselves.

To hear these reports and interviews, click on the links above right.