The final option would come on the assumption that the uprising in the occupied territories could force Israeli concessions.

The defense minister said any Israeli concessions were reversible, the Israeli radio reported.

But the Palestinian leader's rejection of major Israeli concessions was not mere personal stubbornness.

He called for tangible gestures of Palestinian goodwill in return for Israeli concessions.

The Israeli concessions would not save lives, he said.

London and Washington even explored the possibility of Israeli territorial concessions to Egypt.

Mr. Abbas says he needs Israeli concessions before he moves.

"I was very concerned that if the talks didn't break up, the Israeli concessions would be total."

Shas has generally opposed such Israeli concessions in the past and its support is by no means guaranteed in the future.

A cessation of terrorism is the American precondition for further Israeli concessions.