The Israeli cabinet began discussion yesterday Thursday of the interim peace deal which would hand over more territory in the West Bank to Palestinian control.

But as the debate adjourned last night, a new problem developed over the rejection by a senior Palestinian official of a key Israeli demand.

The official the speaker of the legislative assembly, Ahmed Korei said the Palestine National Council, due to meet in Gaza next month, would not vote to annul clauses in the Palestinian charter calling for the destruction of Israel.

The Israeli Prime Minister, Binyamin Netanyahu, is demanding clarification, saying the issue could kill the peace accord.