Sharon forms hawkish coalition of opponents to Palestinian state

ISRAELI Prime Minister Ariel Sharon yesterday formed a hawkish coalition government dominated

In a last-minute surprise, Mr Sharon manoeuvred Foreign Minister Benjamin Netanyahu a former prime minister who is his rival in the Likud Party out of the Cabinet by offering him the finance portfolio.

Mr Netanyahu, who had said he would only stay on as foreign minister, turned down the offer. Mr Sharon's office then announced the new foreign minister will be outgoing finance minister Silvan Shalom, aged 45, a Likud Party stalwart with little diplomatic experience and aspirations of succeeding Mr Sharon at the helm.

Mr Sharon has repeatedly promised he would push for peace and offer "painful concessions" in his second term. However, the make-up of Mr Sharon's team suggests a dramatic Israeli initiative is not likely soon.

In addition to Mr Sharon's 40-seat Likud faction, the coalition includes the National Religious Party, a patron of Jewish settlers in the West Bank and Gaza, and the National Union, which has members who advocate pushing the Palestinians out of the West Bank.