Peres to quit Labour to back Sharon

ELDER statesman Shimon Peres looks set to leave Israel’s Labour Party, his political home for 60 years, and join Ariel Sharon’s government if the prime minister is re-elected in March.

A Sharon associate and newspaper reports said Mr Peres would likely be charged with developing the outlying Galilee and the Negev regions if Sharon retains power.

In Barcelona yesterday, Mr Peres refused to be drawn out. "I shall decide tomorrow night," he said.

But he had warm words for Mr Sharon and none for Labour, whose members ousted him as party chairman earlier this month, in favour of union firebrand Amir Peretz.

"Mr Sharon took a different direction for a Palestinian state. He wants to continue the peace process," Mr Peres said.

Speculation has been rife since Mr Peres lost the leadership of Labour that he would join forces with Mr Sharon ahead of March 28 elections.

A Sharon ally said the prime minister hopes to clinch a final peace deal with the Palestinians if re-elected.

"Sharon's new party, Kadima, will strive in this term to reach a final status agreement with the Palestinians and to set Israel's permanent boundaries," Cabinet Minister Meir Sheetrit said.

Last week, Mr Sharon quit the Likud Party he helped to found because he was convinced that dissidents opposed to the summer's Gaza withdrawal would try to stifle further concessions to the Palestinians.

Palestinian Planning Minister Ghassan Khatib played down the significance of Mr Sheetrit's remarks, saying Mr Sharon and the Palestinians had a different peace deal in mind.

"He is pursuing a unilateral approach, which is not constructive, and he wants peace that is incompatible with our legitimate rights and with international legality," Mr Khatib said.

Mr Sharon is building settlements and consolidating Israel's occupation of the West Bank, "moving in the opposite direction" of a final peace deal, he said.

While Israel's election campaign heats up, on the Palestinian side, primaries for the ruling Fatah party were in disarray less than two months before January 25 parliamentary elections, roiled by violence and problems with party lists.

Palestinian leader Mahmoud Abbas said he'd honour results of Fatah primaries in the West Bank last week, but has not decided whether voting should take place in other areas.

Gaza primaries have been cancelled after gunmen attacked polling stations.

The cancellations embarrassed Mr Abbas, who has been unable to restore order in the coastal strip or in his own party ahead of a tough electoral challenge from the Islamic militant group Hamas.