DATE= 3-21-02

TYPE=CORRESPONDENT REPORT 2-

TITLE=U-S / ARAFAT /TERROR (S)

NUMBER=2-287833

BYLINE=DAVID GOLLUST

DATELINE=STATE DEPARTMENT

CONTENT=

INTRO: The Bush administration is formally designating the radical Palestinian faction - the Al-Aqsa Martyrs Brigades - as a foreign terrorist organization. The announcement came just hours after the group, an off-shoot of Yasser Arafat's Fatah movement, claimed responsibility for Thursday's suicide bombing in Jerusalem. V-O-A's David Gollust reports from the State Department.

TEXT: Officials here say it is unclear whether the Al-Aqsa faction carries out its attacks with the approval or knowledge of Mr. Arafat or other top leaders of Fatah. But the decision by Secretary of State Powell to add the group to the U-S terrorist list does reflect growing administration concern about such a possibility. State Department spokesman Philip Reeker said that following Thursday's suicide attack, Mr. Powell telephoned Mr. Arafat to demand action against the extremists:

///REEKER ACTUALITY///

The Secretary called upon Chairman Arafat to condemn today's acts publicly and personally in the strongest manner, in English and in Arabic. The Secretary told Chairman Arafat he must punish the leaders of organizations responsible for recent attacks, making sure those responsible are brought to justice.

///END ACT///

A State Department official said Mr. Powell's language was "extremely tough and firm" and reflected U-S anger over the latest bombing and the fact that it scuttled Israeli-Palestinian security talks arranged by U-S envoy Anthony Zinni. (Signed)

NEB/DAG/KBK