Seeking A REMEDY Israelis confounded by Palestinians as intiMa shows no sign of abating. Ducking TheBUTALLTS JAMES D. BESSER Washington Correspondent or months, the Israeli government, backed by American Jewish groups across the political spec- trum, have blamed Yasser Arafat's Palestinian Authority (PA) as violence against Israelis surged. This week, the State Department officially acknowledged those charges in its annual Patterns of Global Terrorism report, but stopped short of endorsing them. Some Jewish groups blasted the report as another official whitewash; others expressed surprise that it seemed to contradict an earlier report and presiden- tial statements that were much more explicit in their charges about PA involvement._ The report noted Israeli accusations that the PA has shirked its counterterrorism commitments and that PA security officials and Fatah members actual- ly took part in attacks against Israeli targets. But U.S. officials did not evaluate those charges, or add the PA or its affiliates to the list of terror- sponsoring organizations. Edmund Hull, the State Department's acting coun- terterrorism coordinator, said the report means the U.S. government acknowledges the Israeli charge "has some credibility. It may be that we're not able to address the question or resolve it, but we think it's worthwhile to at least raise the issue." That was seen as a warning to Arafat delivered with padded gloves, not brass knuckles. "It's characteristic of the State Department: it can't make a simple, declarative statement," said Daniel Pipes, president of the Middle East Forum and a critic of the Oslo process. "It has to hedge to keep the lines of communication open and hope for a new round of diplomacy." Last month's annual PLO Commitments Compliance Report for June-December, 2000, was F BULLETS ,)n page 2001 26 GIL SEDAN Jewish Telegraphic Agency Jerusalem srael doesn't understand the Palestinians, lamented a former official who has spent years trying to do so, and this is why Israel doesn't know how to deal with them. The speaker was Ami Ayalon, until recently the head of Israel's Shin Bet security service, which fights an ongoing e, b war against Palestinian terrorism. e, Ayalon, who became a go-between for former Prime Minister Ehud Barak with Palestinian offi- cials, suggested a "simple" solution to the conflict with the Palestinians when he was interviewed this week by Israel's Channel Two Television. Give the Palestinians an independent state and the seven-month intifada will be over, Ayalon said in the interview broadcast Monday night. Palestinian Authority President Yasser Arafat chose the path of violence over diplomatic negoti- ations because "Barak lost all the confidence the Palestinians had initially given him," Ayalon said. Israel is "strong enough militarily, and I would like to believe morally, to give the Palestinians their own independent state," he said. The interview was noteworthy because the comments sympathetic to the Palestinian cause came from a man who once stood at the core of the Israeli security establishment. It also was noteworthy because of how isolated Ayalon is in his analysis of Palestinian motivations. Not only hawkish members of Prime Minister Ariel Sharon's government would disagree with Ayalon; many leftists, disenchanted with Arafat, also consider Ayalon's analysis naive. I No Signs Of Waning Across the political spectrum, Israelis feel they have good reason to suspect the Palestinians. While many, Israelis had believed that the violent Palestinian uprising that began in late September would burn itself out, it shows no signs of abating. Time and again, Arafat pledges to reduce the violence, and Palestinian attacks intensify. Shooting and bombing attacks continue at the rate of dozens a day. This week, for example, just as Foreign Minister Shimon Peres was announcing that Israel and the Palestinians were nearing agreement on the terms of a cease-fire, Hamas terrorists killed an Israeli in a West Bank ambush. The victim's father had been killed in another West Bank drive-by shooting in January ,. Do the Palestinians really want ro end the vio- lence? Some Israelis thought there was light at the end of the tunnel last week, when the two sides discussed reopening the casino in the West Bank city of Jericho. . Immensely profitable for the Palestinian Authority,, which is a joint owner, the casino was among the first casualties of the violence that erupted last September. Before that, it provided a living to more than 1,000 Palestinians, drawing thousands of Israelis for whom gambling is illegal within Israel's borders. If Israel would let Israelis come back to the casi--; no, Palestinian negotiators promised, the Palestinian Authority would bring an end to attacks on the Jordan Valley road, a major traffic artery between Jerusalem and the Galilee. Israeli drivers have all but stopped using the road for fear of roadside ambushes. Many Israelis were outraged, saying the Palestinians should not be permitted to keep the peace where it is profitable for them to do so, while attacking Israelis elsewhere. Others noted that the offer seemed to resolve doubts about whether the Palestinian Authority can control the anti-Israel violence if it chooses. The talks broke down when Sharon said he would not rescind an order preventing Israelis from traveling to the West Bank. Without Israelis, who were the leading patrons of the Jericho casi- no, there was little point in pursuing the idea of reopening the gambling mecca. Israelis also were optimistic that the violence