March 6 (Bloomberg) -- Arab foreign ministers threatened to freeze their peace initiative during an Arab summit in Syria this month, unless Israel acts ``positively'' toward the offer and ends an offensive on the Gaza Strip.

The initiative, proposed by Saudi Arabia at the Arab League summit in Beirut in 2002, calls for full Arab recognition of Israel, in return for Israeli withdrawal from the Arab land occupied in 1967 and establishing a Palestinian state on the West Bank and Gaza, with east Jerusalem as the capital.

The decision comes in response to growing popular pressure in Arab countries, especially those with full diplomatic ties with Israel, to act against the Israeli operations in Gaza. Egypt became the first Arab nation to sign a peace accord with Israel in 1979 and Jordan followed suit in 1994.

``We will not give any more concessions to Israel; we will not keep begging for peace,'' Amr Moussa, secretary general of the 22-member state Arab League, told reporters after a meeting of Arab foreign ministers in Cairo yesterday to set the agenda for the March 29-30 summit in Damascus. The initiative will be reactivated when Israel ``shows commitment to establishing a Palestinian state,'' he said.

At least 120 Palestinians were killed and dozens wounded in air attacks and a ground offensive started by Israel on Feb. 29 after an Israeli was killed by a rocket launched from the Gaza Strip. Hamas took over Gaza in June after nine days of fighting in which it ousted the Fatah movement. Fatah controls the West Bank.

`Negative Step'

``This is a negative step,'' said Emad Gad, editor-in-chief of Israeli Digest, a publication of Al Ahram Center of Strategic Studies, a Cairo-based think tank. ``It reflects the Arab leaders' embarrassment because they can't stop Israel. The Arabs should have offered a more detailed initiative with clear steps to pressure Israel to react positively.''

Shani Cooper-Zubida, spokeswoman for the Israeli embassy in Cairo, said that Israel has responded positively to the Arab peace initiative and the decision does not help peace in the region.

``Arab countries will benefit economically from having full relations with Israel,'' she said in an interview yesterday. ``We'd better focus on building ties.''

Jordan and Egypt receive aid of about $2.3 billion a year from the U.S. and have won tariff-free access to its markets.

The Arab League also said yesterday that Syria will invite Lebanon to the Arab summit whether Lebanon has elected a president or not. Lebanon has been without a president since pro-Syrian President Emile Lahoud's term ended Nov. 23, a crisis that was originally high on the agenda for the Damascus summit.

Struggle to Influence

The standoff reflects the struggle to influence politics in Lebanon between the government of Prime Minister Fouad Siniora, backed by the West, Egypt and Saudi Arabia, and the opposition, backed by Syria and Iran.

``Syria will invite Lebanon and Lebanon will choose who will represent it,'' Syria's Foreign Minister Walid al-Moallem told reporters yesterday. ``We will also invite Saudi Arabia, eventually.''

Syria has invited most Arab League members except Saudi Arabia and Lebanon. Countries like Egypt did not confirm the level of their representation in the summit.

To contact the reporter on this story: Abeer Allam in Cairo at aallam@bloomberg.net

Last Updated: March 5, 2008 17:07 EST