Officials report the decision to continue the boycott was made during a meeting between Foreign Minister Silvan Shalom and EU foreign ministers. Foreign Minister Shalom warned EU colleagues that as long as Yasser Arafat remains in the picture, there would be no progress towards peace between Israel and the PA. However, newly appointed European Union Mideast envoy Marc Otte has been deemed "acceptable" by Israel, and will remain the contact person between Israel and the EU, even if he meets with Arafat.



British Foreign Secretary Jack Straw stated that if Israel remains firm in her position, he and others might decide to stay away from Israel. Explaining the European position, EU Foreign Minister Javier Solana insisted that Arafat is not an obstacle to peace, but part of the process and a necessary component to future talks.



A recent BBC report, however, confirms that the Palestinian Authority is funneling at least $50,000 a month to the al-Aksa Martyrs’ Brigades. According to a Fatah terrorist interviewed by the British radio station, Arafat, in firm control of the PA monies, has not asked the Brigades to halt any attacks. In addition, Israeli security officials have blamed the PA for facilitating terrorism by returning to a "revolving-door policy", which directly facilitated Tuesday’s attack. In Bethlehem, where the PA maintains security control, the PA arrested six wanted terrorists, and then immediately let each one go.



The European Union also again called on Israel to halt construction of the counter-terrorism partition fence aimed at stopping suicide bombers and other terrorists from entering into pre-1967 Green Line Israel from PA autonomous areas. An EU statement released to the media on Tuesday added the continued construction of the fence "would cause further humanitarian and economic hardship to the Palestinians.... Thousands of Palestinians west of the fence are being cut off from essential services in the West Bank, Palestinians east of the fence will lose access to land and water resources."



Addressing yet another Israeli front against terrorism, southern Lebanon, United Nations Secretary-General Kofi Anan’s personal representative for southern Lebanon, Staffan di Mistura, has once again called on Israel to cease violations over Lebanese airspace. Israeli jets reportedly overfly Hizbullah outposts and camps along the southern Lebanese border, as the Hizbullah terrorists maintain efforts to attack IDF forces along the border and periodically fire missiles over northern Israeli cities. According to the UN chief’s emissary, nine violations by Israel were recorded over southern and eastern Lebanon in recent weeks.