PA: Let us kill Israelis freely, let the US give us money and give us a terror state . Or else.

Haaretz - Israel News: "In Ramallah, however, PA officials warned Powell that they could not be responsible for the reactions of armed Palestinian organizations should the Israel Defense Forces kill any of their members. According to Palestinian sources, both PLO head Mahmoud Abbas and Palestinian Prime Minister Ahmed Qureia urged Powell to press Israel to stop IDF operations such as the one in Ramallah on Sunday, in which three Fatah operatives were killed during an attempt to arrest them.

A senior PA official told Haaretz that IDF operations inside PA-controlled territory such as Ramallah are particularly problematic. 'These are the biggest threat to the continuation of Palestinian rule and our ability to hold elections on January 9 in an optimal fashion,' he said.

The official said that Abbas and Qureia also presented various other demands of Israel to Powell, including dismantling parts of the separation fence, as well as asking the U.S. for financial support. Powell responded that he will try to explain the importance of financial aid to the U.S. Congress.

At his meeting with Sharon, Powell stressed that U.S. President George Bush sees an opportunity to advance the peace process. Bush has not changed his view that the Palestinian state must be free of terror and incitement, he said, but efforts to combat terror and incitement must not become a precondition for negotiations.

Sharon stressed in response that Israel rejects European proposals to skip the first stage of the road map peace plan, which requires the PA to fight terror and carry out reforms, and go straight to final-status talks.

'The Palestinians are daydreaming if they think that after Arafat's death, all they need to do is submit a list of demands to Israel,' he said."