Israel and Palestine Condemn Bombing

Palestinian leader Mahmoud Abbas angrily accused a 'third party' yesterday of sabotaging the Middle East peace process by orchestrating the suicide bombing on Friday night, as Israel threatened a resumption of targeted killings of militants.

The Israeli Defence Minister Shaul Mofaz accused Syria and Islamic Jihad, which has offices in the Syrian capital, Damascus, of being behind the bombing which killed four young Israelis in a Tel Aviv nightclub queue. A West Bank cell of Islamic Jihad yesterday claimed responsibility, although the militant leadership denied being involved.

A resumption of Israel's targeted killings of wanted militants, which Israel recently agreed to halt, would more than likely mean the end of the ceasefire declared earlier this month. Mofaz also said Israel would freeze plans to transfer security control of the West Bank towns to the Palestinians until they crack down on Islamic Jihad.

Abbas, speaking after Palestinian forces had arrested at least three men in the West Bank in the hunt for those behind the bombing, said he remained committed to a truce with Israel and was exchanging information with Israel, the US and Europe.

The bombing renewed tensions in the run-up to a meeting of Palestinian representatives and leading international figures in Britain this week and dealt a blow to peace hopes. Earlier a senior Palestinian investigator linked the blast to Hizbollah, the Lebanese-based Islamic militant movement, though its leaders in Beirut denied the charge.

Both Israel and the Palestinians have recently accused Hizbollah of trying to sabotage peace efforts but experts said that a bombing in an Israeli city would mark a radical change in strategy for the Iranian-backed group. Analysts pointed out that the weak Palestinian administration is seeking to prove itself by reining in extremist groups and would benefit from shifting the blame away from home.

Security officials named three men arrested at the West Bank village of Deir al-Ghoson - the first suspected militants held since Abbas succeeded the late President Yasser Arafat in January. The family of the bomber announced through loudspeakers that Abdullah Shelbayeh 'had carried out a martyrdom operation' but there was little sign of the celebration that has often followed previous bombings.

The attack shook many Israelis, who had begun to believe such scenes had ended. The last such bombing killed three people in Tel Aviv in November.

Israeli officials demanded Palestinian action instead of more talks to woo armed groups. 'We must see arrests, collecting illegal weapons from those terrorist organisations... The only language they understand is force,' said Gideon Meir, for the Foreign Ministry.

The 25-nation conference in London this week is due to look at ways to help Palestinians improve security forces and build Israeli confidence in their ability to prevent attacks.

Palestinian militant factions have said they are still not satisfied with Israeli gestures meant to build confidence - such as the release of 500 out of 8,000 prisoners and an end to army raids and assassinations.

They also want a more sweeping Israeli pullback from Gaza and parts of the West Bank, which is slated to begin on 20 July.

Foreign Secretary Jack Straw said yesterday it was now more important than ever that this week's meeting should go ahead. 'It will certainly make the mood much more sombre. There was an ever present risk of this, and it is quite deliberate by terrorist organisations,' he said. Straw said the meeting would be squarely aimed at 'supporting the Palestinians on their security reform'.

The meeting on Tuesday - due to be attended by Condoleezza Rice, the US Secretary of State, as well as representatives of 30 countries - is expected to agree an American-led international co-ordination group on security, drawing the White House into a significant role with the Palestinian administration.

In a statement yesterday, Straw said the bombing was an 'appalling and cynical attempt to undermine the genuine progress that we have seen in recent weeks in the search for peace... President Mahmoud Abbas has made clear his intent to end the violence and to act against the terrorists who perpetrate it.'

Funding is unlikely to be pledged at the conference, but leading contributors to the security effort are likely to include Egypt, with neighbouring countries likely to commit to training and mentoring Palestinian security forces.

The summit on Tuesday will also cover economic development and governance issues. However, diplomats privately admit that much of significance of the event is 'public relations'. They say that having pictures of Abbas welcomed by Blair and 'generally treated as a statesman and leader' will bolster his position internationally and domestically.