``We didn't achieve a breakthrough. On the contrary, we are working hard to overcome differences,'' said State Department spokesman James Rubin.

Albright was more upbeat in fielding a reporter's question on a possible breakthrough. ``We'll see. We had good constructive talks,'' she said as she left.

Arafat said nothing as he left the Churchill hotel after his 90-minute meeting Albright.

President Bill Clinton, US officials and Arafat had all played down any talk of a major development before the meeting.

US mediator Dennis Ross flew to London after meeting yesterday in Washington with Israeli Prime Minister Benjamin Netanyahu. ``Some ideas came up,'' an Israeli diplomat told newsmen in explaining Ross' trip.

Albright already was in London to brief Clinton on the intensive US effort to persuadeNetanyahu to hand over an additional 13 per cent of the West Bank to Arafat.

And Arafat flew in from Oslo, Norway, where he said earlier in the day that he hoped his meeting with Albright might nudge the peace process forward.``I hope she will have something to say to me about the talks that took place between her and Netanyahu,'' Arafat told 300 delegates at a meeting of the socialist international.

In his speech, Arafat accused Netanyahu of obstructing negotiations, in particular the 13 per cent handover.

``The current Israeli government is not serious about reaching a just and permanent settlement with security for all,'' he said.

Israel radio reported that Netanyahu had agreed to withdraw from 13 per cent of the West Bank now, provided he would not have to hand over more land in a third pullback.

In a related development, Vice President Al Gore called on Arafat to curb his occasional anti-Israeli rhetoric and to combat terrorism consistently.Echoing a favorite theme of Netanyahu, Gore saidArafat ``cannot say one thing to the world and another thing to his own people.''

However, in a speech last night to the annual policy conference of the American Israel Public Affairs Committee, a strong pro-Israel lobby, Gore did not declare the administration in opposition to a Palestinian state.In fact, he said the future of the West Bank and Gaza was for Israel and the Palestinians to decide through face-to-face negotiations.

Meanwhile, Arafat reiterated in an interview published in Cairo today that he is determined to declare an independent Palestinian state in May next year despite Israel's rejection of the step.

``Whether they like it or not... the Palestinian people are bearing all the political, economic, moral and physical tragedies for the sake of achieving their big dream of establishing their own state on Palestinian land with the holy city of Jerusalem as its capital,'' Arafat told the London-based Pan-Arab newspaper Al-Hayat.