Top Arafat Aide Has Bleak View Of Talks Status No Trust Left Between Two Sides

With the peace process stalemated despite a U.S. push, Yasser Arafat’s chief negotiator said Sunday that direct contacts and trust between Palestinians and Israeli premier Benjamin Netanyahu had broken down completely.

“Mr. Netanyahu has no more cards to play,” Saeb Erekat told reporters.

Erekat also said the Palestinians would agree to arbitration in the wake of continuing disagreement over each side’s outstanding obligations. Israel rejected the idea.

Meanwhile, the Israeli daily Haaretz reported that the United States is working on a proposal for Israel to pull out of 12 percent of the West Bank in three stages over an 80-day period in return for a Palestinian crackdown on Islamic militants.

Netanyahu and Arafat both met with President Clinton in Washington last week to try to bridge gaps over implementing last year’s U.S.-backed agreement, in which Israel pledged three more troop pullbacks in the West Bank by mid-1998.

Israel disagrees with the Palestinians’ interpretation that the agreement means their autonomy - which currently covers 27 percent of the West Bank - must expand to nine-tenths of the territory.

Israel also believes its deviations from the accord pale beside the Palestinians’ failure to prevent terrorist attacks that killed more than two dozen Israelis last year. Israel has compiled a 12-page list of Palestinian violations of the agreement.

Israel has been on alert for a Hamas terrorist attack for days. On Sunday night, police set up roadblocks outside Tel Aviv and Jerusalem to stop suspicious cars.

Israel has reportedly offered a single 10 percent pullback, instead of the three pullbacks.