WASHINGTON, Jan 26: Stopping short of downgrading relations with the Palestine Authority, the United States is seeking to mount pressure on so-called moderate Arab states to force President Yasser Arafat to take action against those involved in the smuggling of Iranian arms to Palestinians.

The weapons were seized on a ship last week, and the US believes that senior officials of the Palestine Authority were involved. M Arafat has denied any knowledge of the shipment.

The episode has led to a marked increase in the anti-Arafat bias in sections of the Bush administration, and there were reports that Washington might consider freezing of contacts with the Palestine Authority and even closing its office here.

However, at a meeting held at the White House on Friday, it was reportedly decided that for the moment, a new effort should be made to let Arab countries like Egypt, Jordan and Saudi Arabia make Mr Arafat comply with demands for action against the officials allegedly involved in any smuggling of arms and take stronger action against militants.

A week ago, letters were sent by President George Bush to leaders of the three countries outlining the evidence Washington is said to have about the smuggling case and asking them to press Mr Arafat to account for the affair.

President Hosni Mubarak of Egypt was stated to have written back to say while he recognized that the incident had posed a problem, the focus should be on moving the Middle East peace process forward.

King Abdullah of Jordan is due in Washington next week when he will discuss the issue with US officials.

Both President George Bush and Secretary of State Colin Powell made strong remarks against Mr Arafat on Friday, with Mr Bush saying he was “disappointed” in the Palestinian leader.