Yasser Arafat has called for an end to suicide bombings and has vowed not to capitulate to Israel as its forces continue their assault on his compound in the Palestinian city of Ramallah. Earlier, the Israelis fired a tank shell that came close to killing him.
In his first public statement since the siege began on Thursday, the Palestinian leader called for an end to attacks inside Israel, which sent in tanks to encircle his West Bank headquarters after seven people were killed in suicide bombings.
"We are ready for peace but not for capitulation, and we will not give up Jerusalem or a grain of our soil which are guaranteed to us by international law," he said in a written statement released by the Palestinian news agency WAFA.
The demolition of most of his presidential complex in the city of Ramallah has left him looking weaker than at any point since he returned to the Palestinian territories in 1994 under interim peace deals with Israel.
Fire raged through the roof of one of the wrecked stone buildings in a dusty compound that has been turned into a wasteland by the Israelis.
"I reiterate my call to the Palestinian people and all our parties to halt any violent attacks inside Israel because (Prime Minister Ariel) Sharon exploits them as a cover to destroy the peace of the brave," Arafat said in his statement.
Arafat aide Nabil Abu Rdainah said Palestinian officials who were in contact with world leaders were told the United States had pressed Israel to stop shooting in the compound.
"The Americans should be aware that what Israel is doing and Washington's backing for Israel is endangering the interests of the U.S. in the region," he said.
Yesterday, in Gaza, three Palestinians, including a 15-year-old boy, were killed by Israeli troops. The European Union has condemned the Israeli action and the US has called for restraint.
Israel says the purpose of its latest assault against Arafat is not to kill him but to isolate the Palestinian leader and to effect the handover of 20 Palestinians it says are in Arafat's headquarters.
It is understood Arafat escaped unhurt last night when a tank shell hit the floor just above him and showered him with debris. The Israeli army confirmed tank fire was directed "near" Arafat's offices, saying it was intended to force the wanted men out.
The U.N. Security Council have scheduled an emergency session on the Middle East crisis for this Monday, at the behest of Syria.
The Israelis have enforced curfews on six of the eight Palestinian-ruled cities in the West Bank and sent troops and tanks on a raid into the northern Gaza Strip.
Israeli forces blew up family homes of two militants which it claimed sent a suicide bomber who killed 22 people in a Tel Aviv disco in June 2000.
One of Arafat's bodyguards in the sandbagged, fortress-like facility was killed by an Israeli marksman early on yesterday.
At least 1,550 Palestinians and 599 Israelis have been killed in the Palestinian uprising that erupted in September 2000 after talks on statehood stalled.