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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared White House lists some proposed cuts in 2011 budget 30 Jan 2010 Conservative energy greets former House Speaker 30 Jan 2010 Americans arrested taking children out of Haiti 30 Jan 2010 Rejected or not, Super Bowl ads generate buzz 29 Jan 2010 Actor Rip Torn arrested drunk, armed in Conn. bank 3:20am EST Americans arrested taking children out of Haiti 30 Jan 2010 White House lists some proposed cuts in 2011 budget 30 Jan 2010 Actor Rip Torn arrested drunk, armed in Conn. bank 3:20am EST Conservative energy greets former House Speaker 30 Jan 2010 China: U.S. arms sales to Taiwan hurt national security | Video 6:16am EST Yemen clashes continue, ceasefire offer rejected Mohamed Ghobari and Ulf Laessing SANAA Sun Jan 31, 2010 9:55am EST Factbox Factbox: Roots of Yemen's conflict with northern rebels Sat, Jan 30 2010 SANAA (Reuters) - Yemen rejected a ceasefire offer from Shi'ite rebels on Sunday and said fighting was continuing, as neighboring Saudi Arabia accused the insurgents of mounting sniper attacks inside its territory. World | Saudi Arabia The conflict with the northern rebels, who complain of social, religious and economic discrimination in the southern Arabian state, has rumbled on since 2004, but intensified last year and drew in oil-rich Saudi Arabia. Yemen is also struggling against al Qaeda and southern secessionists, and Western powers fear it could become a failed state. The U.S. State Department's counterterrorism chief was visiting Yemen on Sunday, state media reported, a week after Britain hosted a conference on how to stabilize the Arab world's poorest country. Yemeni soldiers clashed with rebels in the northern provinces of Malahidh and Saada, killing 20, including a leader responsible for training, state media reported on Sunday. Rebel leader Abdul-Malik al-Houthi said on Saturday he was prepared to accept government conditions for a truce, days after he made a ceasefire offer to Saudi Arabia and said his fighters had withdrawn from Saudi territory. But a government official said on Sunday: "The Houthi offer is rejected as it does not vow to end attacks on Saudi Arabia and because it sets as a condition an end to military operations (by the government) first." The rebels said they would accept five conditions set by Sanaa for a ceasefire that include the removal of rebel checkpoints, withdrawal of forces and clarification of the fate of kidnapped foreigners. The government says the rebels must also return captured military and civilian equipment and stay out of local politics. But the Houthis made no mention of the sixth condition, the ending of attacks on Saudi Arabia, which Sanaa added after Riyadh launched an assault against the rebels in November. "This is a key demand we cannot make concessions on," Tarek Ahmed al-Shami, a spokesman for Yemen's ruling party, told Reuters. Yemen would "see no obstacle" to ending its military operations if the rebels committed themselves to all six points, the National Defense Council said in a statement. A Saudi military source said rebel snipers were still crossing the border into Saudi territory and exchanging fire with Saudi troops daily, nearly a week after the rebels said they would withdraw from Saudi land. Saudi Arabia declared a full victory over the rebels on Wednesday. The Yemeni Defense Ministry's online newspaper said the rebels, known as the Houthis after the name of their leader, had opened fire on a refugee camp, killing a child and wounding two others. There was no response from the rebels to the claim. Britain hosted talks in London last week where countries including the United States discussed ways to stabilize the Arabian Peninsula state, which grabbed the world's attention after the Yemen-based regional command of al Qaeda claimed a bomb attempt on a U.S.-bound plane on December 25. Yemen's President Ali Abdullah Saleh, its foreign minister and other senior officials met Daniel Benjamin, the U.S. State Department's coordinator for counterterrorism, state media reported. "They discussed counterterrorism and ways to cooperate between the United States and Yemen, especially in the military, security and development areas," a senior official told Reuters. (Additional reporting by Mohammed Sudam; writing by Raissa Kasolowsky; editing by Andrew Roche) World Saudi Arabia More from Reuters China: U.S. arms sales to Taiwan hurt national security BEIJING/WASHINGTON (Reuters) - U.S. arms sales to Taiwan hurt China's national security, its foreign minister said, escalating the rhetoric in a dispute threatening to deepen rifts between the world's biggest and third-biggest economies. | Video A week of tense bankers, recovery hopes, star gazers U.S. bank bailout encourages risky behavior: watchdog Obama budget to assure investors while boosting jobs Air security "blacklist" angers U.S. allies Copenhagen climate deal gets low-key endorsement » More Top News Davos in the spotlight Get the latest news, videos and analysis from the World Economic Forum in Davos, Switzerland, January 27-31. Full Coverage Wanted: Tough central bankers Greece battles sky-high debt Next year's Davos guest? 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