US National Security Advisor Condoleeza Rice said today that the \"current direction of the Palestinians\" does not allow for the establishment of a Palestinian state.\" Speaking to television interviewers, she specified that the problem lies with Yasser Arafat and his leadership.



Amidst increasing calls even within the PA for changes and improvements, PA Cabinet members Nabil Amar submitted his resignation yesterday. Amar explained that Arafat had rejected his demand for \"deep reforms\" in the Cabinet and the PA\'s security organs.