Expressing the sense of the Congress regarding the terrorist bombing in Jerusalem on September 4, 1997.

Expresses: (1) outrage over the terrorist bombing in Jerusalem on September 4, 1997; (2) condolences to the families of the victims and to the people and Government of Israel; and (3) the commitment of the American people to remain dedicated to Israel's security.

Demands that Palestinian Liberation Organization (PLO) Chairman Yasser Arafat and the Palestinian Authority eliminate the terrorist infrastructure and combat terrorist activities of all terror groups operating in areas under its control and fulfill PLO commitments made to Israel, the United States, and the world.

Informs Arafat and the leaders of the Palestinian Authority that either they do what they pledged to do as part of the Oslo process to fight terror and the terrorist infrastructure or the entire peace process, relations with America, and the hopes of the Palestinian people for a better future will be seriously jeopardized.

Urges Secretary of State Madeleine Albright to underscore to the Palestinians that the Palestinian Authority must fulfill its obligation of fighting terrorism with all the means at its disposal.

Calls for suspension of all U.S. assistance to the Palestinian Authority until such time as substantive compliance with its commitments under the Oslo agreements is achieved.