Israel Attorney-General Elyakim Rubinstein January 20 ordered police to upgrade the examination into President Ezer Weizman's alleged financial improprieties to criminal probe level.

A statement issued by the Justice Ministry said that Rubinstein made the decision after a special police team presented him "alleged evidence of a relationship of a business nature between Mr.Weizman and a company connected to (French millionaire) Mr. (Edouard) Saroussi," who have donated at least 453,000 US dollars to Weizman as "gifts".

The business link, that began in 1983 or 1984, continued even after Weizman served as a Cabinet minister, the statement said.

Given these findings, Rubinstein and State Attorney Edna Arbel have asked the police to open a criminal investigation in cooperation with the tax authorities.

Some law experts said the probe will lead to allegations against Weizman over bribery and tax evasion.

It is believed that the calls for Weizman's resignation will intensify after the launch of the criminal probe, the first of its kind against a reigning president in Israel's 52-year history.

However, Weizman was continuing his highly-ceremonial duty Thursday by meeting with visiting Armenian President Robert Kocharian.

Arye Shumer, director-general of the President's Office, said that Weizman would not resign and he would decide on his future after receiving Arbel's judgment on the case.

Labor Party Secretary-General Ra'anan Cohen said Weizman does not have to resign and he hoped Weizman will come out clean. Chairman of the ruling coalition Ophir Pines-Paz also stated that Weizman should not be forced to resign.

Weizman's lawyer Ya'akov Weinroth said he was informed of the criminal investigation on Wednesday night. He responded Thursday ina statement that the president asked to be investigated in the sameway as any other citizen, without privileges.

Weizman was charged by investigation journalist Yoav Yitzhak at the end of last year with receiving at least 453,000 dollars from textile magnate Saroussi via a trust fund when he was a Knesset (Parliament) member and cabinet minister between 1988 and 1993.

Weizman admitted that he did receive "cash gifts from Saroussi, a close personal family friend, for personal use". But, Weizman claimed, since Saroussi is not a resident or citizen of Israel and has no business interests in Israel, he was therefore under no legal obligation to report the gifts to Knesset or tax authorities.

State Attorney Arbel started her investigation on January 11 after receiving financial documents related to the cash gifts.

But three days later, Rubinstein and Arbel stated in a dramatic press conference that after going over the material evidence, they had reached the conclusion that a police team should be formed to continue the examination and make additional clarifications.

Thus, a four-member special police team began probe last Sunday. But at that time, they emphasized that the nature of the probe is an examination, not a criminal investigation.

Elected president in 1993 and re-elected in 1998, Weizman was one of the most outspoken and popular politicians in Israel. The fighter-turned-peacemaker will end his second-term as president in 2003, if not resign because of the investigation.

If Weizman chooses to step down at last, his duty will be taken over by Knesset Speaker Avraham Burg until a new election is held in the Knesset. Former Prime Minister and Regional Cooperation Minister Shimon Peres was viewed by many analysts as the leading candidate to succeed Weizman.