HARRY SMITH: The shock waves continue to rumble across the Middle East and much of the world after yesterday's bus bombing in Jerusalem. This morning Israel launched its first salvo in the war it has promised against the terrorists responsible. And joining us now from our Washington bureau is Israel's U.S. ambassador, Itamar Rabinovich. Good morning, Mr. Ambassador.

AMBASSADOR RABINOVICH: Good morning, Mr. Smith.

MR. SMITH: Two huge considerations here. First is the safety of the people of Israel. Can it be guaranteed?

AMB. RABINOVICH: Yes, it can be guaranteed. We have always looked at this peace process as a peace process that is meant and designed to bring to our people a package of peace and security. It's called a peace process. Its aim is to bring peace. But if it does not bring security and guarantee security alongside with peace, it does not meet our own definition.

MR. SMITH: Hamas has long been viewed in a large sense by many Israelis as Yasser Arafat's problem. If Yasser Arafat cannot control Hamas, what does this, in fact, do to the peace process?

AMB. RABINOVICH: It gravely affects the peace process. But the point is that we believe that he can. He has done --

MR. SMITH: He has shown no evidence of that so far, do you think?

AMB. RABINOVICH: He has shown little evidence of it so far. When he did want to take Hamas on, he did so successfully. This is not something that he does willingly. He is a politician. He is a political leader. He wants to coopt rather than confront. And we think that he has misread the danger of Hamas. It is our task now to make him confront these realities. Our task means, first and foremost, Israel, but also of the other Arab partners to the peace process. And we should all convey to Arafat this very clear message that Hamas and terrorism is a cancerous development.

MR. SMITH: And if he doesn't?

AMB. RABINOVICH: If he doesn't, the results are not going to be very good. But at this point, I think the early indications are that the rally that you showed earlier and other indications are that he's beginning to grasp the severity of the challenge to himself and to his own people.

MR. SMITH: Several recent terrorist acts have been retribution from Hamas for the death of their bombing expert known as "the engineer." There were pamphlets circulated yesterday in Israel saying that this would have been the last act of retribution. Can there be a final act of retribution from either side?

AMB. RABINOVICH: The point is that Hamas cannot be believed. There's always an apparent reason. There's retribution for this or there is a particular holiday or anniversary. The point is that Hamas is an organization dedicated to terrorism and destruction. It always finds a reason or a pretext for acting. I do not take these claims very seriously, nor do I take very seriously the promise not to engage in terrorism for the past three months. We should prepare on the assumption that Hamas will strike whenever Hamas can.

MR. SMITH: Mr. Ambassador, we thank you so much.

AMB. RABINOVICH: Thank you very much.