Defense Minister Shaul Mofaz, who has met daily with Prime Minister Sharon to discuss the ramifications of Palestinian Authority Chairman Yasser Arafat’s possible death, convened a session with security and IDF chiefs in Tel Aviv yesterday.

Instructions were given to monitor the situation but not to take any provocative actions.

Central Command sources said troops were on alert, but that no special deployments were made.

Other sources said for the past week, all leaves have been canceled for units in sensitive areas, but there has been no significant reinforcement of forces or call-up of reserves.

Officers have said that the circumstances of Mr. Arafat’s death will dictate the measures to be taken, as per the army’s contingency plan, according to which Mr. Arafat’s death abroad of apparently natural causes is the most comfortable scenario.

Furthermore, sources in the government said that for the time being it was decided not to alter the current policy toward the PA. There will be no release of funds or other actions that could be seen as strengthening or weakening any of the PA figures standing in while Mr. Arafat is being treated in Paris, they said.

Army officers downplayed preparations for dealing with possible outbreaks of violence. The moment Mr. Arafat dies, the focus will be on maintaining security and dealing with possible mass demonstrations, including an upsurge in violence.

Security officials believe that while the initial period after Mr. Arafat’s death will remain reasonably calm, violence and possibly anarchy may erupt in the Palestinian areas over internal leadership struggles and attempts by Hamas and other terror organizations to play a more active role in the future PA government.

They said that Israel will continue to offer humanitarian assistance in preparations for a funeral and for the foreign dignitaries expected to attend. The officials stressed that under no circumstances will Israel permit Mr. Arafat to be buried on the Temple Mount or elsewhere in Israel or areas under its security control.

“Strategically speaking, our intention is to interfere as little as possible,” one security official said.

Meanwhile, the Defense Ministry will only permit Palestinian Arabs older than 50 to participate in Friday prayers at the Aqsa Mosque to ensure that if violence erupts, security forces will be able to maintain control over the smaller number of worshippers.

Prisons Service chief Yaacov Ganot raised the level of alert in the country’s prisons last night and ordered intelligence officers to closely monitor the 4,000 Palestinian Arab security prisoners, but to allow them to mourn Mr. Arafat.