Prime Minister Sharon informed Foreign Minister Shimon Peres yesterday that he, Peres, would not be permitted to meet with Arafat tonight. Sharon is willing to make a deal, however. He told the Knesset today that if Palestinian terrorism stops totally for the next 48 hours - not 7 days, as had been the demand until now - he would not only allow Peres to meet with Arafat, he would also call off all IDF offensive activity against the Palestinian Authority.