Syrian President Bashar Al Assad accused Israel of trying to drag Syria and the rest of the Middle East into wider conflict.
He told London-based Al Hayat newspaper Syria would not yield to US demands to expel Palestinian organisations.
In his first public comments on Sunday's Israeli air strike on a Palestinian camp near Damascus, Assad said: "(The raid) is an attempt by the Israeli government to extract itself from its big crisis by trying to terrorise Syria and drag it and the region into other wars," he said.
Syrian Information Minister Ahmad Al Hassan told Asharq Al Awsat newspaper yesterday that the raid hit an abandoned building in which one guard was injured. He said footage of a training camp released by Israeli army was "doctored to give Israel an excuse to carry out its attack".
Israeli Prime Minister Ariel Sharon, meanwhile, buoyed by US backing for Israel's right to defend itself, said yesterday the army was ready to "hit its enemies any place and in any way".
**Tel Aviv Rejects Quraya Ceasefire***
Meanwhile, Palestinian Prime Minister Ahmad Quraya has proposed a ceasefire with Israel, but a cabinet minister immediately rejected his offer.
Quraya said he was ready to start talks with Israel immediately, with the aim of pushing forward the US-backed "road map" aimed at ending the Palestinian-Israeli conflict, in an interview with Israel's Maariv newspaper on Wednesday.
"We are ready to fulfill our obligations as outlined by the road map on the condition that Israel fulfils its obligations as well," said the premier, a day after his emergency cabinet was sworn in.
But Israeli Labour Minister Zevulun Orlev dismissed the proposal, saying his country does not have to give Quraya a chance.
"He needs to prove himself through action and not through pleasant words," said Orlev, a member of the right-wing National Religious Party.
The Israeli minister reiterated calls for Quraya to rein in Palestinian activists spearheading the Intifada against Israel's occupation.
Also, Israeli occupation forces arrested 20 Palestinians in the occupied West Bank city of Jenin and its refugee camp, early on Wednesday.
Jenin has been under a blanket closure for four days.
Hundreds of Israeli soldiers re-invaded the city, storming civilian homes and interrogating residents.
**PHOTO CAPTION***
Syrian President Bashar al-Assad (L), Ariel Sharon. (AFP)