Netanyahu threat

Netanyahu convened his nine-member inner cabinet to discuss what the Israeli press described as a US ultimatum -- Israeli acceptance of an American proposal for a 13 per cent withdrawal or cancellation of a White House ceremony next Monday to launch final status talks.

The full cabinet of 17 ministers was expected to make the final decision on the US proposal on Sunday.

US Secretary of State Madeleine Albright issued the invitation after two days of separate talks in London with Netanyahu and Palestinian President Yasser Arafat that failed to achieve a breakthrough.

She said President Clinton was prepared to host the two sides for long-delayed talks on a final peace accord but only if interim issues were resolved in advance -- an allusion to the US proposal that Israel hand over another 13 per cent of West Bank land to Palestinian self-rule.

Netanyahu, referring to the American proposal, told Israel radio: "I don't want to get into details here but the United States knows what we can do and what we can't do. We don't accept dictates."

The prime minister went on: "Of course the United States is important to us, and to this government. But we need to remind everyone that we are not a sub-state of the United States. We are a sovereign state."

After declaring Tuesday night that he would go to Washington, Netanyahu left open the possibility that he might not go if there were too many strings attached.

Asked if rejecting an invitation from such a crucial ally was even an option, Netanyahu responded: "Possibly. Am I obligated to accept every invitation on any condition?"

He said that if the United States was telling him that his presence in Washington was linked to his acceptance of the US proposal as is, "then I am very doubtful that this summit will come to be."

Arafat, who arrived Tuesday night in Morocco, welcomed Clinton's invitation. The Palestinian leader was expected in Cairo today for consultations with President Hosni Mubarak.