Cabinet secretary Danny Naveh set out the conditions after a cabinet meeting. This followed suspension of the cabinet vote on the land-for-security deal after a car bomb in Jerusalem today morning that killed two people, including a suspected suicide bomber, and wounded 21 others.

``The Israeli government will resume its discussions on approving the Wye accord when it sees the Palestinian authority take very firm steps to conduct a merciless war against terrorist organisations and their infrastructures,'' Naveh told media persons.

The government also wants evidence that ``the Palestinians intend to respect all their commitments in the accord, including a vote in the Palestinian National Council (PNC) to do away with the charter and arrest the killers,'' he said.

``Since the Wye accord, we have witnessed two verygrave phenomena which are sabotaging Israel's good intentions,'' Naveh said.

``First, the terrorist operations against Israelis. Second, the PLA's stepping up its attempts to dodge its commitments in the accord.''

Meanwhile, the Palestinian authority called for urgent US intervention to prevent the bomb attack from derailing the Wye accord.

``We call on the American administration to intervene immediately to help implement what has been agreed upon at Wye plantation,'' Palestinian leader Yasser Arafat's spokesman Nabil Abu Rudaina said.