Although it is increasingly difficult to view Palestinian leader Yasser Arafat as anything other than an agent for conflict, his recent support for a proposal to bring U.N. observers to East Jerusalem, Gaza and the West Bank hints at a capacity, however slight, for restraint. In a region where restraint is often seen as weakness, it is a hint Israel must not ignore.

During the eight weeks of bloody conflict, with a death toll now at 220, Mr. Arafat has tried to generate U.N. support for a force of some 2,000 armed troops. Since Israel must agree to such a force in its sovereign territory, Mr. Arafat always inserted a poison pill, saying the role of the international force would be to protect Palestinians from Israeli aggressors.

Now, a French counter-proposal for a much smaller force of unarmed U.N. observers is in play. It was discussed at a secret meeting at the Egyptian mission to the United Nations in New York Tuesday and, while Palestinian and Israeli leaders won’t comment, other diplomats at the meeting say they detected a glimmer of hope.

A glimmer isn’t much, but it beats the status quo. While there is always the danger that mission creep could turn a few hundred unarmed observers into a full-blown intervention, that is a risk the U.N. has to take. Palestinian and Israeli leaders have not spoken to each other, directly or indirectly, in weeks. The fighting continues unabated – four Israelis were killed Monday, eight Palestinians Tuesday – and in the absence of active peace initiatives, the hawks are ascending.

An increasingly popular view among Israeli politicians and the public is that their military, one of the most modern in the world, should be unleashed. Palestinians, including Mr. Arafat, warn darkly that they have yet to play their trump card, a 40,000 member police force that is ready and willing to die.

The reason such a catastrophe has not already occurred is the same reason a small contingent of unarmed U.N. observers is needed. Both sides are actively courting world opinion – the Palestinians need it to legitimize their claim to an independent state, Israel needs it to survive in a hostile region – and impartial eyewitnesses could provide an additional moderating influence. If not, if one of the world’s most modern armies could go to war with Mr. Arafat’s 40,000, and mission creep will be the least of the U.N.’s, and the world’s, worries.