U.S. Secretary of State Colin Powell met today with Arafat in Ramallah, after a meeting with President Moshe Katzav this morning. The American demanded that the PLO leader take stronger measures to \"stabilize the ceasefire,\" and said that Israeli declarations condemning Arafat are \"damaging and unnecessary.\" Taking a position diametrically opposed to that of Israel, Powell said, \"I think that if we reach the confidence-building measures stage, we will need international observers to come to the flashpoints to give us an independent view of the situation.\"



On the other hand, Powell has made it clear over the past two days that Prime Minister Sharon and the Israeli government will be those who will determine when the violence has stopped. \"This process is a package,\" Powell said, \"and we have to end the violence, at least for a number of days, before we open the package...\" Next on Powell\'s schedule is a meeting with Sharon later today, upon the latter\'s return from his trip to the U.S. and Great Britain.



Secretary Powell met earlier this morning in the Foreign Ministry with Minister Shimon Peres. Peres took an \"independent\" stance of his Prime Minister before the meeting when he said that the new Yesha outposts must be dismantled (see article 5 below). Peres is scheduled to meet with Arafat during a gathering of socialist leaders in Lisbon two days from now; Sharon recently forbade a meeting between the two, but later agreed that they could meet if he was informed beforehand.



Yesha Council leaders demonstrated outside the Foreign Ministry today with oil barrels, dramatizing the connection between U.S. pressure on Israel and the Americans\' anxiety not to antagonize the oil-producing countries.