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Monday February 26, 2001

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Powell endorses Palestinian demands for economic relief

By The Associated Press

RAMALLAH, West Bank - Secretary of State Colin Powell backed Palestinian demands that Israel ease its economic curbs on the West Bank and in Gaza.

Using Palestinian terminology after a two-hour meeting with leader Yasser Arafat, Powell said yesterday it was time "to lift the siege"

Earlier in the day in Jerusalem, Powell was evidently unable to persuade Israel's Prime Minister-elect Ariel Sharon to alleviate the economic pressure that has been applied to Palestinian-held areas in an effort to deter attacks on Israelis.

Powell said the economic pressure "does nothing to improve the security situation." He blamed both sides for violence and promised that when it subsided, President George W. Bush would play "a leadership role" in trying to negotiate an agreement between Israel and the Palestinians.

For his part, Arafat insisted peacemaking must begin where it broke off in January. Outgoing Prime Minister Ehud Barak offered the Palestinians most of the West Bank and control over parts of east Jerusalem.

Arafat rejected the offer and Barak called it dead after his landslide loss to Sharon. Arafat said "no government can basically erase the moves of previous governors."

Powell's meetings with Arafat at the Palestinian leader's headquarters on the West Bank came on the second day of a four-day visit to the Middle East, Persian Gulf and Europe.

Powell acknowledged that the bombing of Iraq by U.S. and British warplanes had stirred a surprising outcry in the Arab world, though Powell said he had no apologies to offer for retaliating for Iraqi harassment of U.S. overflights.

At a news conference after meeting with Sharon, Powell said the attack could have been coordinated better in order not to inflame Arab sentiment.

"Our action was a little more aggressive than usual and got a little more attention," Powell said. "But I have no apologies."

Three Iraqis were killed and 25 others were wounded in the Feb. 16 missile attack on air defense and radar sites south of Baghdad.

Powell, meanwhile, apparently made no headway with Sharon and, on Saturday night with outgoing Prime Minister Ehud Barak, on persuading Israel to ease its economic curbs.

Sharon said Arafat first must end violence against Israelis. "In order to ease the restrictions there are steps Chairman Arafat will have to take," he said.

Powell said he was "greatly disturbed" by the report on Israel's security he received Saturday night from Chief of Staff Shaul Mofaz.

"It is a very dangerous situation," Powell said. "This is the time to bring calm to the region and to bring about security cooperation."

Sharon, underscoring their apparent accord on the issue, said Israel required "full security" and that while he maintained "pipelines" for messages to the Palestinian Authority there were no ongoing negotiations.

From here, Powell went to Ramallah on the West Bank for talks with Arafat.

Responding to reports Iraq may be nearing development of nuclear weapons, Powell said it was all the more important to prevent Saddam Hussein from acquiring weapons of mass destruction.

"Saddam Hussein is a threat to the nations of the region as well as Israel," he said.