Israel decides to hold to truce

Palestinians say Israel has kept the blockades in place

Israel's security cabinet has decided not to abandon the truce brokered last week by the United States in the continuing conflict with the Palestinians.

A statement released after a three-hour meeting of 13 ministers accused the Palestinians of not fulfilling their side of the agreement, but said that despite this, Israel would continue its efforts to implement it.

It added, however, that "Israel reserves the right to defend itself and prevent attacks against its soldiers and civilians."

As the ministers were convening, a pipe bomb placed in a rubbish bin exploded in the city of Hadera, about 50km (35 miles) north of Tel Aviv. Nobody was hurt in the attack.

Mr Burg: "Everyone understands there are limits"

"The Israeli Government notes that the Palestinian Authority has still not fulfilled its obligations under the Tenet document - halting terrorism, arresting terrorists, stopping incitement to violence and taking measures to prevent attacks," the cabinet statement said.

In Washington, Avraham Burg, the speaker of the Israeli parliament, the Knesset, said Israeli military intelligence had concluded that a ceasefire did in fact not exist.

Palestinian leader Yasser Arafat, who is currently in Madrid, blamed the settlers for the violence, but said that he would do everything to control the situation.

Ahead of a meeting between Israeli Prime Minister Ariel Sharon and US President George Bush, scheduled to take place in Washington next week, the US has expressed hope that the ceasefire would last a while longer.

"The president's hope is that the ceasefire will continue to take hold, that the violence will diminish, and that [an] unconditional ceasefire by both parties can be implemented," White House spokesman Ari Fleischer told reporters on Tuesday.

Violence continues

Five mortar shells landed near a Jewish settlement in the Gaza Strip on Tuesday, the Israeli army said, a day after two settlers and two Palestinians were killed, bringing the death toll since the truce began up to eight.

Mr Arafat: Blames the settlers for the violence

Mr Burg met with US Secretary of State Colin Powell for 40 minutes on Tuesday and delivered a message from Mr Sharon, assuring him that Israel would maintain a policy of restraint.

But he later told reporters that while his government's policy is to be restrained in using force, "everyone understands there are limits, especially when the Palestinians are not doing their best."

Palestinian officials, however, accuse Israel of keeping in place blockades around Palestinian towns and villages in the West Bank and Gaza Strip, thereby breaking the terms of the ceasefire.

Settlers not included

Some Palestinians have said the truce does not apply to settlers - 27 have been killed since the intifada began in September.

"We said from the beginning that there is no cease-fire for the settlers," Ziad Abu-Ain, a leader of Mr Arafat's Fatah movement in the West Bank, told Israel radio.

Fatah took responsibility for the shooting incidents Monday, in which two settlers were killed.

The fragile truce, negotiated by CIA chief George Tenet, was accepted grudgingly by Israelis and Palestinians one week ago.

At this stage, according to Mr Tenet's proposal, the sides were expected to plan a six-week ceasefire framework after which peace negotiations would resume.

Israeli and Palestinian security officials are scheduled to meet on Wednesday evening to discuss the situation of the truce.