LONDON — A leading Israeli research institute warns in a report being released today that the Jewish state — beset by Palestinian attacks and a dismal economy — is rapidly losing its military edge over the Arab world.

"This is an ominous trend," said Uzi Arad, director of the prestigious Institute of Policy and Strategy and an author of the report.

The report says the decline stems mainly from the deployment of the country´s military resources to combat internal terrorism instead of acquiring weaponry and in preparing for attacks by other countries in the region.

"While the Israeli public is withstanding the continuous assaults on its personal security remarkably well, the overall results suggest a decline in Israel´s position relative to Israel´s adversaries over the past two years," Mr. Arad said in remarks accompanying the report.

The decline in Israel´s relative strength vis-a-vis its potential enemies has come about since the year 2000, and reverses a trend of increasing superiority that had been developing over the previous decade, the report says.

The report was prepared for a conference of the country´s top military planners in the coastal city of Herzliya that opens today.

The conference is supported by, among others, the National Security Council in the prime minister´s office, and the offices of the ministers of defense and foreign affairs. (copyright © 2002 News World Communications, Inc. 12/02/02)