MADRID (Reuters) - The Spanish government vowed on Friday to continue its fight against the Basque guerrilla group ETA despite the separatists` declaration of a unilateral ceasefire. Interior Minister Jaime Mayor Oreja said the government was carefully studying ETA`s new initiative but would wait until after Basque regional elections on October 25 to judge whether the guerrillas were truly ready to renounce violence. Mayor Oreja said the government had no intention of halting police

efforts to arrest ETA members just because the rebel organisation had promised to implement an indefinite truce in its 30-year fight for independence. "It is clear that the government cannot declare a truce with a terrorist organisation," Mayor Oreja said in an interview with the Madrid television station Antena 3. He said authorities were concerned that ETA might use the ceasefire as a smoke-

screen for regrouping its forces, which have suffered major blows in recent months from a police crackdown. ETA`s ceasefire took effect on Friday. Mayor Oreja said the unsettled political climate in the Basque region during an election campaign would make it impossible to draw firm conclusions on the sincerity of ETA`s announcement until after polling day.