reptile denies corruption, page-2

Israeli Prime Minister Ariel Sharon has dismissed an appeal from Palestinian leader Yasser Arafat for a halt to attacks on Israeli civilians, calling it a ploy to boost the chances of his main challenger in Israel's election later this month.

A Palestinian cabinet statement has condemned "all acts of violence that target Palestinian and Israeli civilians" and urged militant groups to practise self-restraint in the run-up to the election.

It is thought a pre-election period of calm could increase the vote for Israeli Labour party chief Amram Mitzna, who supports talks on a Palestinian state.

The Palestinian Authority has openly voiced preference for Mr Mitzna, who has said Israel cannot achieve peace without dismantling Jewish settlements in the occupied territories.

Meanwhile, the South African clothing tycoon whose $2 million loan to Mr Sharon has clouded the Israeli Prime Minister's re-election campaign says he was merely helping a friend in need.

Mr Sharon and his two sons allegedly secured a bank guarantee from Cyril Kern to cover debts after donors to the Israeli leader's Likud party exceeded the legal limit for campaign funding in 1999.

Mr Kern has told a British newspaper that after 55 years of friendship he and the Israeli Prime Minister have supported each other both financially and emotionally.

Mr Kern also stressed that he had never made any contribution to Likud or Sharon's re-election campaign.