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DATE=10/7/2000

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL/CLASHES (L-update)

NUMBER=2-267621

BY-LINE=JENNY BADNER

DATELINE=JERUSALEM

CONTENT=

VOICE AT:

INTRO: Israel's Prime Minister, Ehud Barak has given Palestinian leader, Yasser Arafat 48 hours to stop the clashes in the West Bank and Gaza Strip. The ultimatum comes just hours after three Israeli soldiers were captured by Hezbollah geurrillas on the Israel-Lebanon border. Jenny Badner reports from Jerusalem.

TEXT:/ / / Natural Barak in Hebrew and then under text / / /

Israel's Prime Minister, Ehud Barak issued an ultimatum to Palestinian leader, Yasser Arafat, to stop violent clashes in the West Bank and Gaza Strip.

Mr. Barak said if the violence does not stop within the next 48 hours, Israel will call off the peace process and order the Israeli military to respond with full force against Palestinian rock throwers and gunmen.

Speaking to reporters after an emergency cabinet meeting, Mr. Barak said it was not certain that Mr. Arafat is a "partner for peace."

/ / / Barak Act / / /

Unfortunately it leads us into a deadlock that might deteriorate into a confrontation.

/ / / End Act / / /

In response, Palestinian Information Minister, Yasser Abed Rabbo said the Palestinians will not bow to threats. He said, "if the peace process is dead, it is because Mr. Barak killed it."

/ / / Rabbo Act / / /

Mr. Barak knows very well that we do not yield to such threats, and he did not want the peace process in the past.

/ / / End Act / / /

At least 80 people, almost all of them Palestinians, have been killed in more than a week of violent clashes.

Palestinian rioters destroyed a Jewish shrine in the West Bank town of Nablus on Saturday after the Israeli army evacuated its forces from the enclave.

The site, known as Joseph's tomb, was set on fire by the rioters, who also burned Jewish texts and used hammers to break apart the site, piece by piece.

In protest, Jewish settlers, being guarded by the Israeli army, blocked central roads in the West Bank stopping Palestinians from passing.

The latest violence has also spread to a second front to the northern border with Israel for the first time since Israel ended its more than 20-year occupation of southern Lebanon and withdrew its forces in May.

During the clashes, three Israeli soldiers were captured by Hezbollah militants on the Israel-Lebanon border.

Israel exchanged fire with the geurrillas using helicopter gun ships and artillery.

Although no details were revealed about any rescue operation, Mr. Barak echoed statements made throughout the day, that Israel holds Syria and Lebanon responsible for the safe return the soldiers.

/ / / rest Opt / / /

Syria, which has thousands of soldiers in Lebanon is considered the major power broker in the country.

Mr. Barak would not say if Israel planned to bomb Lebanese power stations or cities. (Signed)

NEB/JB/PT