Helsinki, Sunday

PLO leader Yasser Arafat said today that he would give another chance

to negotiations with Israel on the planned withdrawal of its troops from

the Gaza Strip and West Bank town of Jericho.

Arafat told a news conference that a progress report he had received

from negotiator Nabil Shaath was ''completely negative''.

He also claimed the Israeli side was setting new conditions in the

talks.

Shaath made an unscheduled trip from Paris to Stockholm on Friday

night to brief Arafat.

Arafat said the PLO would hold ''an important meeting'' of its

leadership in Tunis shortly to discuss the state of negotiations.

''They are insisting not to withdraw, but redeployment,'' said a

visibly irritated Arafat at Helsinki airport before he left for Denmark,

the final stage of a four-nation tour of Nordic aid donors.

''In spite of that, I gave Shaath the instruction to return back to

continue the discussion . . . I give it another chance,'' said Arafat,

who yesterday had characterised the troop withdrawal talks as

deadlocked.

He said today: ''Patience has limits,'' and accused the Israeli side

of ''trying to make new manoeuvring to overjump what has been agreed

upon''.

The PLO leader noted that US Secretary of State Warren Christopher

would be in Europe this week.

Christopher plans at least two sessions with Arafat as part of a US

move to support the September 13 peace accords signed by Israel and the

PLO. These call for Israel to start moving its troops out of Gaza and

Jericho on December 13 in advance of limited self-rule.

Earlier today Israel shrugged off Arafat's warnings of a crisis in the

talks, saying the deadline was not carved in stone.

''I believe . . . that even if agreement is not reached by the target

date, it will be achieved in a week, two weeks or three weeks after

that. It will not be a tragedy,'' said Health Minister Haim Ramon.

Asked in Helsinki what would happen if Israel delayed the withdrawal,

Arafat said: ''This means there will be no implementation of the peace

accord and everybody has to bear responsibility about what will happen

afterwards.''

Meanwhile, Israeli helicopter gunships blasted two radical Palestinian

bases at a south Lebanon refugee camp today, wounding a guerrilla and

two refugees.

Security sources said two helicopters flying under the cover of

darkness fired four missiles at bases of two Damascus-based Palestinian

groups inside Ain el-Hilweh camp near the port of Sidon, 25 miles south

of Beirut.

The target groups are both members of a coalition that has vowed to

sabotage the PLO-Israeli peace agreement.--Reuter.