There is no alternative to Arafat, Peres tells Israelis

As his country's Arab minority held angry demonstrations to mark the first anniversary of 13 intifada deaths in its community…

As his country's Arab minority held angry demonstrations to mark the first anniversary of 13 intifada deaths in its community, Israel's Foreign Minister, Mr Shimon Peres, yesterday launched a staunch defence of the man most Israelis believe is orchestrating continuing violence: Mr Yasser Arafat.

Offering unprecedented public acknowledgment of a behind-the-scenes government debate about sending Mr Arafat back into exile or even killing him, Mr Peres asked rhetorically: "Let's say we assassinate him. What happens after that?"

The alternatives were all worse, he said, in an interview with the top-selling Yediot Ahronot tabloid. "For all the criticism of Arafat, he is the only Palestinian who recognises the map in which Jordan and Israel exist. Instead of him there will be Hamas, Jihad and Hizbullah. They will try to establish one country between Iraq and the sea."

The newspaper asserted that Mr Peres was "convinced" that Gen Moshe Ya'alon, the Israeli army's deputy chief of staff, wanted to "liquidate Arafat" - but this assertion was firmly denied by an aide to the Foreign Minister. What was undeniable, however, was the extent to which Mr Peres was distancing himself from his own Prime Minister, Mr Ariel Sharon, who has repeatedly characterised Mr Arafat as Israel's Osama bin Laden.

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Mr Peres said: "Bin Laden has no nation and country. He wouldn't stop at anything. You can't say that about Arafat."

Still, Mr Peres - the only outspoken moderate with any influence on Israeli government policy - indicated that he shared Mr Sharon's assertion that Mr Arafat was sanctioning terrorism. However, he said that, unlike the Islamic militants, Mr Arafat "wants to abandon terror at some point". Mr Peres's extraordinary interview came at an acutely sensitive moment. The Israeli government is today set to decide whether it deems Mr Arafat to be doing his best to enforce a ceasefire.

While the Palestinians claim Israel has deliberately intensified military action against them since a Peres-Arafat ceasefire meeting last Wednesday, and are pleading for American and European intervention - 17 Palestinians have died in five days - there has been a significant decline in Palestinian attacks on Israeli targets. Israeli and Palestinian security chiefs have held a series of relatively productive meetings, and the Israeli army was yesterday pulling back tanks and reopening some roads around Nablus, Kalkilya and Ramallah.

But in Jerusalem yesterday morning, a large car bomb exploded in a residential neighbourhood, slightly injuring two Israelis. Islamic Jihad later claimed responsibility. Israeli officials complain that Mr Arafat is still refusing to arrest dozens of Islamic militants whom it alleges are orchestrating such attacks. If the government decides Mr Arafat is breaching his ceasefire obligations, it may renew its policy of trying to kill such militants.

In northern Israel yesterday, Arabs held a general strike and thousands attended marches and demonstrations to mark their intifada anniversary. Posters bearing bin Laden's features were displayed at some marches; at others, there were calls of "death to the Jews" and for the "liberation of (Jerusalem's) al-Aksa (mosque), with blood and fire". At one gathering, near the graves in Sakhnin of some of last year's 13 victims - who were killed in clashes with police - protesters wearing hooded masks burned an Israeli flag. There were also several arrests as younger protesters stoned cars and scuffled with police - ignoring efforts by Arab leaders to calm them.

In Nazareth, Israel's largest Arab town, youths attacked a police station and smashed windows at a post office. Police used tear-gas to disperse them.