The proposal came in the form of a proposal submitted by the Saudi Crown Prince Amir Abdollah Ben Abdel Aziz to Arab leaders who, gathered in Beirut since 27 March, endorsed it unanimously, making it a formal Arab proposal to be submitted to the Security Council of the United Nations

Palestinian leader Yaser Arafat gave his blessing to the Saudi plan in a televised speech originally scheduled for Wednesday from Ramallah, where the Israelis have kept him in virtual prison situation since more three months now, boasting both his position and popularity among his people but also in the world.

The summit had been scheduled to resume at 10 a.m. local time, but as delayed for two-and-a-half hours by haggling over the wording of a reference to Palestinian refugees.

Palestinian Planning Minister Nabil Shaath said earlier most Arab leaders were happy with a Saudi-drafted resolution

"In return to Israel’s full withdrawal from all occupied territories, including Golan Heights, the Arab countries would "consider the Arab-Israeli conflict ended and enter into a peace agreement with Israel and establish normal relations with Israel in the context of this comprehensive peace", the document says.

The "Beirut Declaration" was adopted by a Summit that was marked by the significant absence of heavy Arab leaders such as President Hosni Mobarak of Egypt, the Jordanian Monarch Abdollah and Palestinian leader Yasr Arafat, plus a string of other Heads of states, such a Colonel Mo’ammar Qadafi of Libya, Persian Gulf Emirs and the Iraqi dictator Saddam Hosein.

The summit, that saw the first public embrace between the Saudi Crown Prince and Iraq's Deputy President Izzat Ibrahim in the one hand and a shake hand between Iraqi and Kuwait delegations heads on the other, also approved an agreement between Iraq and Kuwait, paving the way for a landmark normalisation between them since the 1990-91 Persian Gulf crisis.

The Beirut Declaration "welcomed Iraq's confirmation to respect the independence, sovereignty and security of the State of Kuwait and guarantee its safety and unity to avoid anything that might cause a repetition of what happened in 1990", a reference to Iraqi invasion of Kuwait in 1990, resulting in the US-led "international" attack on Iraq.

The conference was marred Wednesday by a deadly suicide bombing in Israel by a Palestinian suicide bomber that killed 20 and wounded more than 100, with26 of them very seriously, and the sudden walk out of the Palestinian delegation from the opening ceremony to protest the Lebanese organisers preventing an address by Mr. Yaser Arafat to the conference via satellite.

"Israel is preparing for a massive assault. We call on our Arab brothers to help pre-empt an Israeli offensive", Mr. Shaath Shaath told reporters.

Palestinian sources said Thursday that IDF tanks began blockading areas in the Gaza Strip and near the West Bank city of Ramallah.

The sources said that Palestinian Authority security forces were on high alert and that all government and military buildings in the West Bank city of Ramallah were evacuated in anticipation of a possible Israeli military strike.

The sources said all military installations in Palestinian Authority cities were evacuated, that many citizens bought food and emergency supplies in preparation of a long siege and worried parents took their children home early from school.

Qoddumi said he was asking the conference to "adopt measures for a unified and decisive position to guard against all future eventualities."

Defense Minister Benjamin Ben-Eleizer is convening Thursday senior security officials to decide on Israel's response to the Netanya attack in which 20 people were killed and more than 100 people were injured. Ben-Eliezer met with senior IDF and Shin Bet security service officials late Wednesday night.

Israeli security sources said Wednesday evening that the attack would have far-reaching consequences on the conflict with the Palestinian Authority.

Adviser to Ariel Sharon, Ra'anan Gissin, said Wednesday that the attack "will require us to re-evaluate our overall policy."

"We are still working to achieve a cease-fire to which we are fully committed, but if the Palestinians have decided to choose the road of terrorism... then we have to decide what measures we will take", Gissin said.

U.N. Secretary-General Kofi Annan, in Beirut for the summit, said he had telephoned Israeli Prime Minister Ariel Sharon and Palestinian President Yasser Arafat to demand an immediate cease-fire in the Middle East.