PRESIDENT Clinton has appealed to Israel and the Palestinians to take "positive steps" to end the violence and unrest in the areas under Palestinian rule.
The US State Department is frying to arrange a meeting between the Israeli prime minister, Mr Benjamin Netanyahu, and the Palestinian leader, Mr Yasser Arafat, to end the fighting.
President Clinton called on "both sides to end this violence, to get back to the business of peace to implement the agreements they have reached, to resolve their differences through negotiations".
The outbreak of violence "points to the urgency for both sides, not only to end the violence, but to take positive steps to resolve the issues that divide them," the President said.
Asked about the US view on the opening of the tunnel, Mr Clinton said that "all the parties should avoid any actions which are likely to undermine the progress of the peace".
The Middle East agreement between Israel and the PLO is seen as one of the foreign policy achievements of the Clinton administration. The President, in the middle of an election campaign, is anxious not to have the agreement wrecked by this latest violence.
US officials were engaged in intensive talks to fry and bring the two sides together and defuse the tensions in the area.
The Secretary of State, Mr Warren Christopher, who is attending the annual session of the UN General Assembly, telephoned Mr Netanyahu. Another senior US official, Mr Dennis Ross, spoke to Mr Arafat.
The State Department showed disapproval of the Israeli actions by saying that the opening of the tunnel "complicates" relations with the Palestinians.
The White House spokesman, Mr Mike McCurry, said that "both sides have demonstrated that they can resolve their differences in face to face discussions".