Jerusalem, June 22, 2001

At a meeting with US Envoy, Ambassador William Burns, Foreign Minister Shimon Peres said that the faster the cease-fire arrives, the sooner we will be able to return to the track of political negotiation. He said that the international actions against terrorism and in favor of discussion would reduce Israel's need to use force in the defense of its citizens.

According to Minister Peres, giving Arafat leeway on the issue of the cease-fire would set a most dangerous precedent which would enable him to maneuver and attempt to combine terrorism and diplomacy.

Peres said that Israel demands clear and unequivocal instructions from Arafat for the cessation of violence and noted that arrests of "bomb carriers" have yet to be carried out, and only minor arrests have occurred.

William Burns said that the US will continue to push for a full cease-fire and will coordinate its moves with the Europeans and other nations. He further said that the return to normal life in the territories, as far as possible under the current security conditions, is of utmost importance.

Foreign Minister Peres detailed to Ambassador Burns the efforts of Hizbullah to gain a foothold in the territories and its growing involvement in terrorism. This is an organization which is funded by Iran, from which it receives instructions and weapons, and whose presence presents a very significant strategic threat to Arafat and the Palestinian Authority, he said.

Peres said also that both sides have lost their faith in peace, and this renders the situation difficult even more than the mutual loss of trust.

Foreign Minister Peres reiterated his suggestion that the US, Europe, and Japan act in tandem to build economic infrastructures in the territories and to create jobs for a population plagued by poverty and unemployment.