Netanyahu went further than Prime Minister Ariel Sharon, who limited his response to saying Israel would react in full force if terrorist attacks resume.
"I do not believe that Israel must give something," the finance minister said in a radio interview from Florida where he is helping to raise money for Israel Bonds. "They are the side that transgresses. They are the side that tried with the force of terror to advance the terrible results that they sought.
"If Abu Mazen and his government begin dismantling the terror organizations, confiscate their weapons and stop the poisonous incitement against Israel, then we will know we are in the right direction."
Special Deputy Prime Minister Shimon Peres did not refer to the terrorists' demands in a meeting with Labor Knesset members and instead praised Abu Mazen. "I doubt if there is any person in the Mideast who in one move can stop terror, and Abu Mazen also cannot control everything. His present leadership is the best we have known and we must make every effort to make it sure it remains."
Terrorist attacks Monday continued to be limited, with occasional fire on Army troops. A Kassam rocket slammed into a hothouse in Gane Tal in southern Gaza. Sunday, a mortar shell Sunday hit the office of Moshav Katif in Gush Katif. Heavy damage was reported in both attacks, but no one was injured.
A senior defense official told Arutz-7 that Israel will have to suffer an "occasional" mortar shell in order to let Abu Mazen try to put an end to all attacks on Israelis. The source said there will not be a total cease-fire in the next several weeks.