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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 Scientists say crack HIV/AIDS puzzle for drugs 1:00pm EST Rejected or not, Super Bowl ads generate buzz 29 Jan 2010 Americans arrested taking children out of Haiti 30 Jan 2010 White House lists some proposed cuts in 2011 budget 30 Jan 2010 Scientists say crack HIV/AIDS puzzle for drugs 1:00pm EST Actor Rip Torn arrested drunk, armed in Conn. bank 3:20am EST Conservative energy greets former House Speaker 30 Jan 2010 Davos Special Reports Davos 2010 Help wanted: Tough central bankers The financial crisis has turned ordinary central bankers into the equivalent of military generals at war. It takes guts to deploy the weapons at their disposal. Full Coverage Is clean tech China's moon shot? Doubling down on risk China Inc's global growing pains Africa rising Related video from Davos Yemen clashes continue, ceasefire offer rejected Mohammed Ghobari and Ulf Laessing SANAA Sun Jan 31, 2010 3:17pm EST Related News Yemen clashes continue, ceasefire offer rejected 9:55am EST RPT- Yemen rejects rebel ceasefire offer - official 3:43am EST Yemen says forces clash with rebels, kill 20 2:11am EST Factbox: Roots of Yemen's conflict with northern rebels Sat, Jan 30 2010 Al Qaeda man captured wearing bomb belt: Yemen 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 Saudi Arabia. Yemen is also struggling against al Qaeda and southern secessionists, and Western powers fear it could become a failed state. A top U.S. counterterrorism official was in 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. GOVERNMENT REJECTS TRUCE OFFER 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 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 Arabia and exchanging fire with its troops daily, nearly a week after the rebels said they would withdraw from Saudi territory. 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 report. 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, trying to reduce subsidies in reforms backed by the International Monetary Fund., raised prices of gasoline, diesel and kerosene up to 14.3 percent on Sunday. In 2005, the government reversed fuel price rises after 22 people were killed and more than 300 wounded in riots sparked by the hikes. 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. "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 Mohamed Sudam; writing by Raissa Kasolowsky; editing by Myra MacDonald) World Saudi Arabia More from Reuters Karzai urges Taliban talks before U.S. pullout KABUL (Reuters) - Taliban fighters should drop their demand that U.S. and NATO forces withdraw from Afghanistan before peace talks can be held, President Hamid Karzai said on Sunday, saying talks would make it easier for troops to leave. Help wanted to sustain the recovery News Corp settles with Valassis for $500 million "Avatar" breaks $2 billion at worldwide box office Macmillan books pulled from Amazon website Bloomingdale's opens first non-U.S. store in Dubai » 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? Davos 2010 Tea party targets a convention The first-ever tea party convention features $550 tickets, steak and lobster and Sarah Palin. Will it pull disparate groups together or descend into infighting? 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