Palestinian leader Yasser Arafat said Saturday he welcomed the resumption of high-level contacts between the Israelis and Palestinians, and was prepared for additional discussions. Arafat spoke briefly to reporters at his battered headquarters in Ramallah. His comments came a day after officials from both sides confirmed that Israeli Prime Minister Ariel Sharon held secret talks on Wednesday with Ahmed Qureia, a senior Palestinian negotiator.

"There is a decision within the Palestinian leadership to continue talks with the Israelis," Arafat said. "We are ready for any talks as long as this might lead us to peace."

Sharon has refused to meet with Arafat, accusing him of masterminding violence and calling for his removal before peace talks with the Palestinians can resume. The talks broke down two years ago, shortly before Sharon was elected prime minister.

Arafat called on Sharon to resume talks just after Sharon's Likud party won a convincing election victory on Jan. 28. Sharon publicly refused, but only days later he met with Qureia. It was Sharon's first meeting with a senior Palestinian figure in about a year.

"You have to remember that I asked Sharon to resume negotiations with me and he rejected this," Arafat said. "This was just a few days after he won the elections."

However, it was not clear whether the Sharon-Qureia meeting would lead to additional talks.

Palestinian officials said the meeting lasted less than two hours, and the two discussed a possible cease-fire and ways of solving the Israeli-Palestinian conflict. Dov Weisglass, director-general of the Israeli prime minister's office was also present at the meeting, the officials said.

Israeli officials would only confirm that such a meeting took place, and that the two discussed the current conflict. Neither side gave additional details.

Qureia, 65, also known as Abu Ala, was a key negotiator in failed Israeli-Palestinian peace talks. He is considered an Arafat confidante and a potential successor. He has maintained close ties with Israeli leaders.

Shimon Peres, Israel's former foreign minister, also welcomed the talks.

"I think tomorrow morning we can start talking with Palestinian officials," Peres told Israel's Army radio. He said that the Palestinian uprising "is not just the enemy of the Israelis, but the enemy of the Palestinians as well."

Meanwhile, the Israeli army on Saturday demolished the West Bank homes of two Palestinians who carried out a shooting attack this week that left two Israeli soldiers dead, soldiers said.

The shooting took place Wednesday night against the Israeli soldiers at an army post on Mount Gerizim, overlooking the Palestinian city of Nablus. The two Palestinian gunmen, Anan Hani and Ahmed Hamad, were also killed in the firefight.

Early Saturday, the army tore down the home of Hani, where nine people were living, and the house of Hamad, were seven people were living, witnesses said. The men lived in two villages just outside Nablus.

The Israeli military has torn down dozens of homes belonging to militants as part of an effort to discourage future attacks. Palestinians denounce the policy as collective punishment.

PHOTO CAPTION

Palestinian leader Yasser Arafat participates in noon prayers at the Palestinian Authority headquarters in the West Bank city of Ramallah, Friday Feb. 7, 2003. (AP Photo/Palestinian Authority, Hussein Hussein, H