Palestinian President Yasser Arafat said Monday peace with Israel was still possible despite two years of violence, and repeated his condemnation of attacks on Israeli and Palestinian civilians. "The peace of the brave is still ahead of us and is not behind us," Arafat told lawmakers in the West Bank city of Ramallah. "After 50 years of struggle and bloody suffering, enough is enough. Enough of the struggle and enough bloodshed."

But he stopped short in his policy speech to a rare session of the Palestinian parliament of echoing a call last week by his top security official, Interior Minister Abdel Razzak al-Yahya, for a complete halt to all attacks against Israelis.

His comments were also unlikely to move Israeli Prime Minister Ariel Sharon, who has accused Arafat of abetting "terrorism." Sharon has also said there could be no talks on a Palestinian state without an end to anti-Israeli violence.

In its own show of displeasure with Arafat, the United States -- the main sponsor of Middle East peacemaking -- has called for a new Palestinian leadership "not compromised by terror" before negotiations on statehood can resume.

"Our national interest is to preserve international support for our legitimate right to resist the military and settlement occupation," Arafat said, referring to areas of the West Bank and Gaza Strip still under Israeli control.

"We have to reiterate our condemnation of attacks against Israeli civilians and at the same time of any attacks against Palestinian civilians," he said.

Speaking in confident tones, Arafat appeared to make light of media reports that some Palestinians wanted him to give up some of his powers, perhaps to a prime minister, in response to criticism of his rule, which detractors have called autocratic.

Arafat said the steadfastness of the Palestinian people depended on "the strength of our institutions and first of all on the legislative, the judiciary and the executive...unless you want to bring someone to replace me."

"I wish you would, and give me a rest," he said with a smile, eliciting laughter from assembled lawmakers.

Arafat then went on to reaffirm plans for elections in January. His aides have said he will run for re-election, and opinion polls show him the clear favorite to win.

Referring to the first anniversary of September 11 attacks in New York and Washington, Arafat said: "The Palestinian people stand strongly against all forms of terrorism, whether conducted by a state or a group or individuals."

GAZA LEGISLATORS BARRED

Arafat addressed the PLC after Israel barred 14 Gaza-based lawmakers -- including one who has died and another who has quit the assembly -- from attending, alleging they were involved in terror.

The 86-member parliament has had few meetings since the outbreak of the Palestinian uprising against Israeli occupation in September 2000. Seventy-five legislators participated in the session -- 47 in Ramallah and 28 by video link in Gaza.

Israel reoccupied Ramallah and six other West Bank cities in June after a spate of Palestinian resistance bombings, which Arafat has condemned in the past.

The PLC convened a week after Yahya's dramatic appeal last week, when he called in a Reuters interview for an end to resistance bombings and all other attacks on Israelis.

Yahya is overseeing a reform of Palestinian security services demanded by the United States.

On the eve of the session under Israeli guns in Ramallah, Israeli armor and infantry raided the central Gaza Strip, destroying a suspected activist's home and an alleged weapons factory before withdrawing hours later.

An Israeli tank shell killed two Palestinians near the southern Gaza town of Rafah, Palestinian security officials said. Israeli military sources said an Israeli occupation force had opened fire at figures crawling toward an Israeli border fence.

Members of the Palestinian legislature have led calls within Palestinian society for more accountability within Arafat's administration.

In a Middle East policy speech in June, President Bush complained that the body "has no authority, and power is concentrated in the hands of an unaccountable few."

At least 1,539 Palestinians and 591 Israelis have been killed since the uprising began.

PHOTO CAPTION

Ahmed Qureia, also known as Abu Ala, speaker of the Palestinian parliament, is seen in this Aug. 12, 2001 file photo. Qureia, a key player in previous peace talks with Israel, was re-elected as speaker of the Palestinian parliament Monday Sep. 9, 2002. He has held the post since parliament first convened in 1996, (AP Photo/Peter Dejong/FILE)