Netanyahu declares that there will be no…

Netanyahu declares that there will be no further land transfers to the Palestinians until the terrorism stops, a statement seen by some as signaling the end of the Oslo process.

Meanwhile, Arafat releases Hamas activists from Palestinian jails and suspends security cooperation with Israel.

Netanyahu, fearing that his cabinet will not approve additional interim steps, argues that Israel and the Palestinians should begin intensive negotiations to determine the final status of the territories.

This proposal is quickly rejected by both Arafat and the United States.