The Israeli cabinet, meeting in the wake of the assassination of Tourism Minister Rechavam Ze'evi, unanimously demanded that the Palestinian Authority immediately extradite the assassins and leaders of the PFLP terror group that dispatched them. Should the PA fail to do so, Israel would regard it as a terror-supporting entity and act accordingly, with full freedom of military action to eliminate terror activity.

Earlier in the day, Prime Minister Ariel Sharon and Defense Minister Binyamin Ben-Eliezer said that they hold Palestinian Authority Chairman Yasser Arafat directly responsible for this morning's assassination of Ze'evi. "Everything has changed today," Sharon told an emergency security cabinet meeting, echoing the dramatic remarks of U.S. President George W. Bush after the terrorist attacks on the United States last month.

Cabinet ministers decided to cancel measures instituted earlier in the week to ease the closure on Palestinians. A taut blockade was reimposed on the city of Ramallah, just north of Jerusalem's Hyatt Hotel where Ze'evi was shot and killed. The cabinet decided to freeze all contacts with the Palestinian Authority and to step up military responses to terror attacks, Army Radio reported.

In a special memorial session of the Knesset, Sharon attacked the Palestinians for harboring murderers and terrorists. "The responsibility belongs entirely to Arafat, who has acted in terror and has not taken a single serious step to prevent terror," he said. Sharon said that Israel wanted peace with the Palestinians but promised, "Compromises with terror will never take place."

"Arafat is responsible for this murder," charged Ben-Eliezer. "There is no doubt in my mind that this puts us in a new situation," he said. "Never before has a government minister been assassinated in broad daylight."

Foreign Affairs Minister Shimon Peres said Ze'evi's murder marked an escalation in the violence, and Israel "would not go on with its normal agenda." Prior to the cabinet meeting Peres phoned British Foreign Secretary Jack Straw and reportedly warned, "If Arafat doesn't take the matters in hand, everything will go up in flames."

President Moshe Katsav also blamed Arafat and the Palestinian Authority for the murder. "Arafat is essentially head of a terrorist organization," he said. "Now we are in a new stage of our fight against terror," he added.

National Infrastructure Minister Avigdor Lieberman (National Union) hinted that Israel's routine would change dramatically in the wake of the killing. Lieberman, who along with Ze'evi had announced that he was quitting the government two days ago, rescinded his resignation this afternoon and the National Union-Yisrael Beiteinu faction announced it would remain in the national unity coalition at least through the end of the seven days of mourning for Ze'evi.

Palestinians deny responsibility, condemn assassination
"We are not responsible," Palestinian cabinet minister Nabil Amr told Reuters in response to Sharon's accusations. "We will do our best to implement our commitments to the cease-fire," he said. "We reject these accusations made by Sharon," said Ahmed Abdel-Rahman, a senior aide to Arafat.

Palestinian Authority Minister of Culture and Information, Yasser Abed Rabbo, issued a statement on behalf of the Palestinian government. "We stand against all political assassinations despite the fact that Mr. Ze'evi espoused hostile policies and ideals towards the Palestinian People, including advocating the forced transfer of millions of Palestinians as well as the killing of Palestinian leaders and despite his hostility towards the peace process. Such an extremist position does not justify political assassinations," the statement said.

"We are sorry that two days ago, Mr. Sharon declared and practiced the resumption of the policy of assassinations against Palestinian political activists," the statement added.

Palestinian sources reported that Palestinians felt a feeling of satisfaction in Ze'evi's death along with increased anxiety over a possible harsh Israeli military response. PFLP supporters reportedly cheered and distributed sweets in a Lebanese refugee camp when they learned their organization had claimed responsibility for the assassination strike.

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