Sharon shuns US call to withdraw

Israel has rejected a tough-worded call by the United States for its tanks and troops to withdraw at once from all Palestinian-controlled areas and to stay out in the future.

In a further sign that it is not prepared to bow to international pressure Israel was blamed last night for assassinating a leading Hamas activist on its most wanted list.

The killing could undermine international efforts to calm the conflict.

Ayman Khaliwa, a leader of the military wing of Hamas, was killed when his car exploded in the West Bank city of Nablus.

According to reports, three other Palestinians were also injured in the attack.

"We are sticking to our positions," a senior Israeli government official said in response to the American demand.

Prime minister Ariel Sharon and defence minister Benjamin Ben-Eliezer visited the Israeli headquarters in the West Bank last night to be briefed on the progress of the operation in Palestinian-controlled territory.