"The Palestinian leadership is warning against the dangers of coming to such an agreement (between Israel and the United States) for this would lead to the destruction of any possibility of peace, of stability and security in the region and will launch a new cycle of violence," it said in a statement after a meeting chaired by veteran leader Yasir Arafat. 

Palestinian premier Ahmad Quraya had earlier said President George Bush would destroy the peace process if he bowed to demands by Sharon to keep control over blocs of West Bank settlements in return for the evacuation of the 21 settlements in the Gaza Strip and four others in the northern West Bank. 

Israeli Prime Minister Ariel Sharon is in Washington to seek
support for his Gaza plan but he has emphasised that his government aims to strengthen its hold on the West Bank enclaves.