"Yasser Arafat has to play a more positive role than he's been playing in recent days or in the last couple of years," Powell said on Fox News Sunday.

"He is still president of the Palestinian Authority, I recognize that, and he has a place in the minds and hearts of the Palestinian people," Powell said.

Powell made his comments after four Israeli soldiers were killed in an attack on a military checkpoint Sunday by Palestinian hardline groups, endangering the roadmap peace plan and Palestinian premier Mahmud Abbas' efforts to secure a ceasefire.

The soldiers were killed Sunday when three militants opened automatic gunfire on an army position at the Erez crossing point between Israel and the Gaza Strip before being gunned down themselves.

The attack, claimed by Hamas, Islamic Jihad and the Al-Aqsa Martyrs Brigades, came only four days after Abbas vowed to rein in radical groups at his summit in Aqaba, Jordan with US President George W. Bush and Israeli Prime Minister Ariel Sharon.

Powell said more outspoken statements by Arafat against terrorism would help to end such acts of terror.

"We have not found him a useful interlocuter -- that's why we haven't dealt with him over he past year or so," the US secretary of state said.

"I hope more nations around the world will bring pressure to bear on Yasser Arafat so that he helps Prime Minister Abbas develop the capability to deal with terrorism, and doesn't just sit on the sidelines hoping that Abbas fails."

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