A 'stern' Powell presses Arafat over the phone

Secretary of State Colin Powell

WASHINGTON (CNN) -- In a telephone conversation described by one U.S. official as "stern," Secretary of State Colin Powell Friday called on Yasser Arafat to act against terrorists even though Israeli troops were only steps from the Palestinian leader's office.

Powell spoke with Arafat for 30 minutes Friday and, according to administration officials, repeated U.S. demands for the Palestinian leader to take steps to end terrorism, including making an appeal on radio and television in Arabic and English for Palestinians to end attacks against Israel.

"There isn't an awful lot he [Arafat] can do in the midst of the Israeli military action," one official said. "But the secretary was not warm and fuzzy. He made clear when it stops he has to take these steps."

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The official said that, while the Bush administration has not lost total confidence in Arafat, officials are "very, very disappointed in him, which does translate to some loss of confidence."

Earlier, while his aides were trying to reach Arafat by phone, Powell told reporters that in recent weeks "there was reason for guarded optimism. And let us be clear about what brought it all to a halt -- terrorism."

"We have spoken out clearly and do so again now," he said. "Chairman Arafat has to act, act against those responsible, to make clear terror and violence must stop now. All those who support peace must reinforce this message."

Israeli tanks and troops took over much of Arafat's compound in Ramallah on Friday, blowing down gates and punching holes in the walls. According to the Israeli army, troops took over most of the compound, fighting room-to-room and arresting as many as 70 people.

The Israeli action follows Wednesday's suicide bombing in Netanya that killed 22 Israelis at a Passover Seder, plus the bomber.

Bush administration officials told CNN Friday they understand the Israeli position that the move is intended to root out terrorism, although U.S. officials said they would like to see the Israeli incursion into Ramallah end.

"We do understand what the Israelis are doing when they claim they are going after those responsible for terrorist attacks," one administration official said. "They say they are going after those responsible for terrorist attacks and the infrastructure of terrorism and we think this is part of that."

U.S. officials noted that speculation has been brewing for some time that heavy Israeli action would take place against Arafat's compound. They said Israel's military action should not be seen as a response only to the terrorist attacks this week, but also to the cumulative effect of months of terrorist incidents targeting Israeli civilians.

Though Powell said he was given assurances by Israeli Prime Minister Ariel Sharon that Arafat would not be harmed in the current action, U.S. officials said they are worried about an accident, such as a stray bullet, hitting the Palestinian leader.

For that reason, officials said, Powell cautioned Sharon to "carefully consider the consequences of those actions."

Arafat's aides said he had been moved to a second floor office in his headquarters building, where he continued to make calls to world leaders.

Powell said U.S. envoy Anthony Zinni will remain in the region in an attempt to work with both sides on a cease-fire.

He said Zinni had generally felt optimistic about the progress he was making until Wednesday's suicide bombing.

Powell said the Israelis have said they do not intend to reoccupy Ramallah but to arrest terrorists and pick up weapons.

"The political process [to work toward peace] is there staring us in the face," said Powell, but he added, "Nothing can get started, no political process can take hold, in the presence of this type of terrorist activity."

-- CNN State Department Producer Elise Labott contributed to this report.