GAZA CITY Nov 10 An ad viser to Palestinian leader Yasser Arafat rejected a proposal by Israeli Prime Minister Benjamin Netanyahu for a Puerto Rico like Palestine say ing there will be no peace without an Independent Palestinian state.

The Just and final solution of the Israeli Palestinian conflict requires the recognition of an independent Palestinian state with Jerusalem as its capital." Nabil Abu Rudeina told AFP

"All other proposals will be useful to the peace process or to an atmosphere of confidence, that's Imperative now. he said

"It's not for the Israelis to determine the future of Palestine. Our position is clear There will be neither peace nor security without an indepen dent Palestinian state whose capital will be Jerusalem, he stressed.

Israeli Prime Minister Benjamin Netanyahu was reported by the Israeli newspaper Haaretz to have proposed a limited sovereignty as in Andorra

of Puerto Rico as the final sta tus lor the Palestinian territories

The Carribean Sea island of Puerto Rico I* a US territory, where residents have US citizenship. but not the right to vote in US legislative or presidential elections

AP adds In a sharp turn from rising tensions. Prime Minister Benjamin Netanyahu said Saturday he was confident Israel and Syria would be talk Ing peace probably by January

Peace talks between Israel and Syria have been frozen since last February, and since the hard line Israeli premier took office in June, public exchanges between the countries have escalated to veiled warn Ings of violence

I am confident that we can restore the Syrian-Israeli peace talks perhaps in January, possibly before.'' Netanyahu said at the opening ot an international business conference in Jerusalem Saturday. “We have committed ourselves to doing so.'

We have every good reason

to pursue peace, given the alter native. Netanayhu said " (X course we want peace "

Syria has rejected overtures by tne Netanyahu government to launch new talks Insisting Israel must be willing to return all of the Golan Heights In ex change for peace Israel captured the atrateglt plateau from Syria during the 1967 Mideast war

Netanyahu said In October that his predecessor Yitzhak Rabin had tacitly agreed to give up all the Golan in exchange for peace treaty Netanyahu said at the lune that verbal under standings were not binding aiul demanded no preconditions for resuming negotiations.

However. Netanyahu reportedly softened his positions recently. saying In a message to the Syrians that he was willing to take past understandings Into account.

The Israeli army has reportedly been on high alert, carefully watching the movement of Syrian troops in south Lebanon for fear that Syria was considering military options.