WASHINGTON

The New York Times reported in today's editions, citing unidentified U.S. and Israeli intelligence officials that Yasser Arafat has forged an alliance that involves Iranian shipments of heavy weapons and money to Palestinian groups involved in action against Israel.

The Times reported that " "The partnership, officials said, was arranged in a clandestine meeting in Moscow last May between two top aides to Mr. Arafat and Iranian government officials. The meeting took place while Mr. Arafat was visiting President Vladimir V. Putin of Russia, according to senior Israeli security officials."

"The Palestinians and Iranians deny they are working together, but American and Israeli officials say they now see the shipment as part of a broader relationship," the Times reported.

Also a senior State Department official said about the sized ship, "There's plenty of evidence to show that it wasn't a rogue operation," 

On the other side the Palestinian Authority officials dismissed the accusations of Iranian involvement.

"This is a factory of lies," Yasir Abdo Rabbo, the Palestinian minister of information, told the Times. "Israel is like any colonial power. When they get in trouble, they try to blame outsiders. There has not been a single Iranian here since the 14th century."