a reprehensible act of a bloodthirsty Jewish terrorist who sought to attack innocent Israeli citizens.

And I think a development depends on one thing, that the Palestinians understand that they have to act against terror. That is, that is the current situation.

Mr. Prime Minister, I ask you to not let this infuriating act detract from efforts to bring about a peaceful solution to the Middle East conflict,

We will continue to fight against the heads of the extreme terror organizations, the ones that initiate, fund and send out terrorists in order to murder Jews, ... We will continue to act against all the enemies of peace.

It's about the window of opportunity that is open now. That, of course, now all depends if the Palestinians will act against terror. And now we don't see any change whatsoever. Even yesterday we had a very, a very hard terror act. As a matter of fact it happens almost every day now,

The Palestinian Authority is responsible for terror, and we hold it responsible also for the criminal act that happened today,

Believe me, the pain I feel with this act is the full realization that we must do it, ... We cannot hold onto Gaza forever, more than a million Palestinians live there... crowded in refugee camps, poverty and hotbeds of hatred with no hope on the horizon.

These methods have failed -- the solution to the conflict must be gradual and controlled. We must, in all stages, act with prudence and determination, exercise judgment, and make very sure that all commitments and agreements are implemented by both sides,

The terrorism continues, and we have to continue and act against the terrorism in any way that we will find,