NEW YORK, June 9: Palestine Liberation Organisation (PLO) President Yasser Arafat has said the peace process in the Middle East has been frozen since Israeli Prime Minister Netanyahu came to power and called for a ``serious and effective'' involvement of the United States at a high level.

``The entire area is facing real trouble. The situation can result in a major escalation of violence,'' he warned in an interview with the American newsmagazine, Newsweek.

Asked if there is danger of the Palestinians resorting to violence out of sheer frustration, he said patience has limits and desperation leads to desperate acts.

``People have started asking `why are you the only partner paying the price of peace,''' he said.

Arafat said he is making full efforts to fight terrorism. ``But I cannot give you one hundred per cent results.''

In reply to a question, he said the Palestinian authority is still coordinating with the Israelis in the ongoing fight against terrorism.Earlier, Israeli and Palestinian negotiators on Sunday night concluded their first face-to-face talks in months with reports of some progress and a promise for more meetings in the future.

Egyptian President Hosni Mubarak's political adviser Osama Baz, who has been mediating between the two sides and attended Sunday's meeting as an observer, said the two delegations had a good session and they agreed to continue talking. ``It was a good meeting and it was held in a very positive atmosphere,'' Baz said after the meeting. Some progress was made, but we need some more talks in order to bridge the gap.''

Palestinians suspended their peace talks with Israel in March to protest a decision by Israeli Prime Minister Benjamin Netanyahu to build a new Jewish settlement in Arab East Jerusalem.

The meeting held under Egypt's auspices on Sunday aimed mainly at setting an agenda to resume peace talks between the two sides.

But that still seemed a difficult task as Palestinians insist that Israel should first freeze the construction of the new settlement in East Jerusalem and promise not to carry out any other settlement activities in the West Bank and Gaza Strip. Netanyahu has vowed to continue building settlements, particularly in Jerusalem and the West Bank, saying a freeze would bring down his right-wing coalition government. When asked whether the talks covered the issue of settlements, Baz said: ``I will not get into these details because we believe they will not serve or guarantee the success of the negotiations.''

The talks between Israel and the Palestinians were held at President Mubarak's palace in the posh area of Heliopolis.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.