1.   Analysts say that the Israelis have proposed separation to counter threats by Arafat that he will soon declare Palestinian statehood without Israeli approval.

2.   And the Americans have refused to say what they would do or say if Arafat does declare statehood unilaterally.

3.   Arafat has vowed to declare actual statehood before the end of the year, but a declaration without Israeli approval could trigger even more fighting.

4.   Arafat says he might declare statehood whether or not he has Israeli approval.

5.   Arafat vows that he will declare statehood with whatever land he holds a year from now.

6.   Arafat has vowed he will declare statehood then, with or without Israeli agreement.

7.   Currently, Congress is considering a bill that would cut U.S. aid to the Palestinians if they declare statehood unilaterally.

8.   Hillary Clinton said U.S. aid to Palestinians should be cut off if they unilaterally declare statehood.

9.   Israel has threatened to annex parts of the West Bank and Gaza Strip if statehood is declared outside the peace framework.

10.   Palestinian leaders decided Thursday against declaring statehood next Tuesday, retreating from a pledge that the Israelis saw as a threat, defusing a volatile situation.