Israel declared President Yasser Arafat's Palestinian Authority a "terror-supporting entity" yesterday, setting the stage for harsher retaliation for a wave of suicide attacks.
A Cabinet statement also branded the military wing of Arafat's Fatah organization and his elite Force 17 security unit to be "terrorist groups," making them potential targets.
Palestinian Information Minister Yasser Abed Rabbo dismissed the declaration, saying Israeli occupation in the West Bank and Gaza was the "source of terrorism" while Fatah vowed to continue the 14-month-old Palestinian uprising.
The Cabinet agreed on the resolution as Israeli troops and tanks launched overnight incursions into two cities and a village in the West Bank.
Hours after the government issued the declaration yesterday, Israeli warplanes and helicopters launched their fiercest air strikes in 14 months of violence, striking near Arafat's main West Bank office while he was inside. Arafat was not hurt, but two Palestinians were killed in Gaza and dozens were wounded in the air attacks.
The government decision to attack and brand the Palestinian Authority an organization which supports terror, prompted a walkout by Foreign Minister Shimon Peres' Labour Party which widened cracks in Sharon's broad coalition.
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