Friday, November 6, 1998 Published at 17:31 GMT
World: Middle East
Jerusalem blast halts peace process
The blast came at a time when many Israelis were out shopping
An official statement, broadcast on Israel Radio, said the government wanted guarantees from the Palestinian Authority that it was fighting a resolute war against terrorism.
Israeli police say the two dead were suicide bombers belonging to the Islamic militant group, Hamas.
At the time of the signing of the recent peace agreement, Mr Arafat pledged to make "a 100% effort" to combat violence, but has repeatedly stressed that he cannot guarantee 100% results.
A Palestinian spokesman, Hassan Asfour, has condemned the bombing, saying all his colleagues in the Palestinian Authority were against terrorist attacks, whose only aim was to destroy the peace process.
Call for US help
The US President, Bill Clinton, condemned the bombing. He said the "outrageous and cowardly" act should not derail the Middle East peace process.
Israeli police say that both the people killed were involved in carrying out the attack.
Last week two people were killed in a bomb attack on a bus carrying Israeli schoolchildren.