President Mubarak of Egypt has urged Israel to implement its latest peace agreement with the Palestinians despite the attack in Jerusalem in which two suicide bombers were killed.

In a newspaper interview in Cairo Mr Mubarak said it was necessary to face challenges to peace with courage and boldness.

Immediately after yesterday's bombing, the Israeli cabinet decided to suspend further moves on the peace agreement.

The Palestinian leader, Yasser Arafat, has gone on Israeli television, saying that the Palestinian security forces will do all they can against militant groups.

President Clinton has urged both Israel and the Palestinians to press ahead with the interim peace agreement reached last month after protracted negotiations near Washington.