JERUSALEM, Oct. 15 (AP)--After more than two weeks of clashes, many Israelis and Palestinians agreed Sunday on a pessimistic forecast: a peace summit in Egypt won't solve any major problems or relieve the current state of bitterness.

Israeli Prime Minister Ehud Barak and Palestinian leader Yasser Arafat both were heading into Monday's summit at Sharm el-Sheik, Egypt, as reluctant participants with low expectations.

Each leader has constituents who advised them not to go, and one senior Palestinian negotiator said Sunday night that Arafat's presence was still not assured.

``President Arafat will not go to the summit if we do not reach an agenda that gives the possibility of success,'' said Nabil Shaath, one of Arafat's Cabinet ministers.

Arafat ``is waiting for a report from us about what is happening, and if we don't reach a suitable solution of the matter, he will not go,'' Shaath told The Associated Press on Sunday evening from Sharm el-Sheik.

Many frustrated Palestinians believe Arafat will face intense pressure to sign an unfavorable agreement at the summit, which will include leaders from the United States, Egypt, Jordan and the United Nations.

``Arafat shouldn't go because Barak will not give anything to us,'' said Annan Amr, 19, a Palestinian student. ``We are here to get our rights by fighting because this is the language Israel knows.''

Most Israelis were also downbeat, questioning whether the Palestinian leadership was sincere about ending the worst violence since the two sides began regular peace talks in 1993.

``I think Arafat doesn't want an agreement,'' said Niv Cohen, 22, a Jew who recently completed his army service. Arafat's ``target is to keep the area violent.''

Meanwhile, two Israeli soldiers were lightly wounded by gunfire Sunday outside the West Bank town of Jericho, near the border with Jordan. Reports said the gumen fired from Jordanian territory.

Also, one Palestinian died of wounds suffered Wednesday. But no major battles were reported as violence continued to abate.

The summit's aim is relatively modest, though by no means assured. The parties will try to arrange a cease-fire, ending fighting that has claimed about 100 lives, most of them Palestinian, since erupting 18 days ago.

Monday's gathering at the Egyptian resort was agreed upon after sustained pressure from President Clinton and other world leaders. Clinton, Barak and Arafat will be joined by Egyptian President Hosni Mubarak, U.N. Secretary-General Kofi Annan and King Abdullah II of Jordan.

Just three months ago, the Israelis and Palestinians came closer than ever to a comprehensive peace agreement during negotiations mediated by Clinton at Camp David, Maryland.

But such lofty aims are not expected to be on the agenda Monday. Following Camp David, the peace talks stalled, and violence broke out shortly after hard-line Israeli politician Ariel Sharon made a Sept. 28 visit to the most contested holy site in Jerusalem, revered by both Muslims and Jews.

Barak gave a bleak assessment Sunday, telling his Cabinet that the Palestinian leadership did not appear ready to make compromises that would bring a lasting peace.

``In the end we will make peace with the Palestinians, but the current Palestinian leadership is now showing that it is finding it very difficult to make decisions related to an agreement,'' he said.

Israel's army chief, Lt. Gen. Shaul Mofaz, said that no matter what the results of the summit, ``the army has to prepare itself for long-term confrontations.''

Palestinian leaders were equally pessimistic.

``I really urge people not to have high expectations,'' said senior Palestinian negotiator Saeb Erekat.

Barak and Arafat have very different goals heading into the summit. They've traded almost daily recriminations and several informal cease-fires have collapsed. The two leaders held marathon meetings Oct. 4 in Paris mediated by the Americans, but couldn't come to terms on a truce.

The Palestinians want an end of Israeli military attacks on Palestinians, a lifting of the closure of Palestinian areas that restrict movements, and a pullback of Israel heavy weaponry from the outskirts of Palestinian towns.

The most contentious Palestinian demand is for an international commission to investigate the violence--Israel says it will only accept a delegation led by the United States.

Barak, meanwhile, is looking for a halt to Palestinian attacks on Israeli soldiers and civilians and the re-arrest of extremists from the Hamas and Islamic Jihad movements who were released this past week. He is also calling for the Palestinian media to stop its calls for further attacks against Israel.

The summit comes amid rising tensions throughout the region. The militant Islamic group Hezbollah announced in Lebanon on Sunday that it had kidnapped an Israeli colonel, the fourth Israeli soldier it had seized in the past eight days. Israel's Defense Ministry confirmed that one of its reservists had been kidnapped outside the country, but did not say where. Israeli security sources and the Israeli media described him as a businessman who was seized recently in Switzerland.

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