Palestinian President Yasser Arafat said on Wednesday he was ready to take action against militant groups if Israel halted missile strikes and other attacks on them.

"I am prepared to implement the law (against militants) on condition Israel stops its attacks," Arafat said in an interview with Reuters, without elaborating on steps he would take.

But he said he would not risk a Palestinian civil war, referring to fears cited by reformist Prime Minister Mahmoud Abbas in his hesitation to crack down on militant groups before Israel halts raids and pulls back forces in occupied territory.

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