"From December 3, 1999, ETA will let its operational commandos know when to recommence their actions," the statement read. ETA's drive for an independent Basque homeland has claimed over 750 lives since it started its campaign of violence in 1968.

Spanish Prime Minister Jose Maria Aznar immediately called ETA's decision "a mistake" and said his government would not cave in to terrorism and blackmail.

"ETA is making a mistake by turning a deaf ear to society's clamor for peace and peaceful coexistence," Aznar said. French Foreign Minister Hubert Vedrine described the ETA announcement as "deplorable". "Our position is clear.We fight against terrorism in all forms and we are cooperating with Spain," he said on RMC-Le Figaro radio.

Officials in France expressed concern at the turn of events. "It is an extremely serious move which could have terrible consequences," said Union for French Democracy (UDF) leader Francois Bayrou. ETA representatives justified their move by blaming the attitudes of Spain and France, as well as that of moderate Basque nationalists, in an interview also published in Gara.

"Over the past year... Spain and France have continued their domination, their occupation (of the Basque country) and their repressive attacks," the group said. "Paris and Madrid are playing with fire," Iulen de Madariaga, a founder member of ETA, told Radio France Pays Basque on Sunday. He accused the two governments of following a "lamentable" course "with political immobility and continual provocation".

The organisation said the moderate Basque parties - the Basque Nationalist Party (PNV), which holds power in the regionalgovernment, and its ally Eusko Alkartasuna - had failed to respect a secret accord reached with ETA at the time of the truce in September 1998.

According to ETA, the two parties had promised to "break with the enemies of the Basque country," but instead they had "changed the content" of the agreement.