Fighting raged on in the West Bank and Gaza Strip today as Palestinian and Israeli leaders jockeyed over urgent US calls for truce talks.
Since last week's attacks in the United States, Washington has called for greater efforts to end a year of Israeli-Palestinian violence as it tries to bring Arab and Islamic states into an anti-terror coalition.
The European Union is also pursuing efforts to bring the two sides together for truce talks. Its Middle East envoy, Mr Miguel Moratinos, met Palestinian President Yasser Arafat in Gaza this evening. There was no word of any breakthrough.
Mr Arafat, in greetings to Israelis on the Jewish New Year holiday, reiterated a ceasefire order.
"I have issued strict instructions for a total commitment to the ceasefire and I hope the Israeli government will respond to this peace appeal and will take the decision to cease fire", Mr Arafat said in a letter released by his office.
Mr Raanan Gissin, an aide to Israeli Prime Minister Ariel Sharon, said: "We welcome his greetings but we wish he will really act on his words and take the necessary action to stop the shooting."
But Mr Sharon said Israel would not make concessions to the Palestinians to help the formation of any US-led coalition. "Our clear, unequivocal answer is that this will not be at our expense", he told the Jerusalem Post newspaper.
Yesterday Mr Sharon blocked his foreign minister, Mr Shimon Peres, from meeting Mr Arafat, and made such talks conditional on at least 48 hours of peace. The Palestinians accused Mr Sharon of setting new conditions in an attempt to thwart peace moves.
A Western diplomat said Mr Arafat held talks late yesterday with Mr Sharon's son Omri, who has often conveyed messages to the Palestinian leader from the Israeli prime minister.
Mr Arafat sent a letter to US President George Bush which reaffirmed the Palestinian commitment to a complete ceasefire , Arafat's senior aide, Nabil Abu Rdainah, told reporters.
He said US Consul General Ron Schlicher had given Mr Arafat a letter from Secretary of State Colin Powell reaffirming the US part to continue to push for peace talks .
Today, a Palestinian national security force officer died of wounds sustained in fighting last week when Israeli forces launched an incursion into a West Bank town. Israel said it raided Jericho in response to Palestinian attacks.
A 33-year-old Palestinian was killed on the sidelines of a battle between Israeli soldiers and Palestinian gunmen in the southern Gaza Strip, near the border with Egypt.
Israeli troops fired on a hill above the centre of the West Bank city of Hebron with shells and machineguns, witnesses and Palestinian security sources said. Each side said the other had fired first. The army said it fired at least two tank shells.