Israel and UK in diplomatic row

Stricter travel restrictions are being brought in

Britain and Israel have clashed over a ban on a Palestinian delegation attending Middle East peace talks planned to take place in London next week.

The Israeli cabinet's decision to stop senior Palestinians travelling to the UK was taken in the wake of Sunday's double suicide bombing, which killed 22 people and two bombers.

Netanyahu visited the wounded in hospital

Israel's move, which in effect wrecks the talks, led to a diplomatic spat between Foreign Minister Benjamin Netanyahu, and his UK counterpart Jack Straw.

In a transcript of a telephone exchange published by the Israeli embassy, each man accused the other of failing to seek proper partners for peace.

According to the transcript, Mr Netanyahu told Mr Straw that the suicide bombings made "business as usual" impossible.

He then urged the UK foreign secretary to adopt the same position as US President George W Bush "that leaders compromised by terror cannot be partners for peace".

Mr Netanyahu added: "You in Britain are doing the exact opposite."

Attack condemned

That apparently drew a sharp reply from Mr Straw who is said to have replied: "No, it is Israel that is doing the opposite.

Scores of people were wounded in the bombings

"Instead of concentrating on dealing with terrorism, it is striking at [Palestinian] delegates."

Mr Straw earlier "utterly and completely" condemned the attack but argued that it emphasised the need to get people around the negotiating table.

"I very much hope the Israeli Government will think again," he said.

A spokesman for Mr Blair indicated that the UK might be prepared to delay the Palestinian talks until later in January.

New measures

The attack in Tel Aviv was the first bombing in Israel in six weeks and the deadliest since last March.

Foreign workers predominate in the area hit by the suicide bombers

Army radio said 43 of the around 100 wounded people were still in hospital on Monday, two in critical condition and five serious.

Hours after the attack, Israeli helicopters fired rockets at a large metalworking factory in Gaza City, which Israel said was being used to make weapons.

Eight Palestinians are reported to have been lightly injured.

Israeli tanks also moved into the town of Rafah in Gaza, where they bulldozed the home of a member of the militant group Islamic Jihad and arrested several of his relatives.

Other retaliatory measures agreed by Israeli ministers include:

• "Pinpoint" operations against Palestinian militants

• Preventing the Palestinian Central Council from meeting on Thursday in Ramallah

• The closure of three Palestinian universities accused by Israel of "inciting terrorism"

• Stricter travel restrictions on senior Palestinian officials, whose cars will be inspected when crossing from one area of the West Bank to another.

"They violated the trust so we have the right to take such defensive measures to make sure that such horrible terrorist activities don't take place," said government spokesman Raanan Gissin said.

Israeli Prime Minister Ariel Sharon blamed Mr Arafat for the attacks, saying he had failed to establish a ceasefire.

Mr Sharon, who is running for re-election this month, said that only when the terror had stopped would Israel be able to talk peace.

But the Palestinians' chief negotiator, Saeb Erekat, said the Palestinian Authority had nothing to do with the Tel Aviv attack and condemned the targeting of civilians.