ARABS-ISRAEL - Oct. 22 - Barak Says 'Time-Out'; Arafat says 'Go To Hell'.

Israeli PM Barak's office compliments the Arab summit's outcome as a "victory of wisdom" because it retained an emphasis on making peace and left Israel's diplomatic ties with Egypt and Jordan intact. A spokesman adds: "Those (Arab) states did decide strategically to proceed with that peace". But Barak releases a statement saying he told his cabinet he is taking a time-out from peace talks with the Palestinians in order "to proceed with a re-examination of the political situation in light of the events of recent weeks". He "rejects outright the threatening language used by the Arab summit towards it and condemns the call for continued violence against it... We are striving for the enlargement of the government with a view to constituting a government of national emergency. I have no doubt about the fact that a national unity government, if constituted, will strive for peace with the Palestinians, despite the differences in approach". (Spokesman Nachman Shai later acknowledged to reporters that taking a time-out from already deadlocked peace talks would help the politically weak Barak woo Likud leader Ariel Sharon into his cabinet. Barak may face a vote of no-confidence when parliament resumes on Oct. 30 unless he can woo Likud and other opposition parties into a coalition with his Labour Party; but Barak's moderate partners are opposed to his plan - see Israel). Arafat tells reporters in Cairo: "My response (to Barak) is that our people are continuing on the road to Jerusalem, capital of the independent Palestinian state, whether (he) accepts or does not accept, let him go to hell".