Sharon postpones decision on barrier

ISRAELI Prime Minister Ariel Sharon postponed a decision on the path of a contested security barrier cutting through the West Bank, a cabinet minister said yesterday, a day after the United States warned Israel might forfeit part of a $9 billion loan guarantee package over the issue.

In another development, the Islamic militant group Hamas offered to call another cease-fire with Israel in exchange for a halt to Israeli strikes against its leaders, a Palestinian official said. But Israel rejected the offer. The Israeli security Cabinet was to have met yesterday to decide on the course of the next segment of the barrier. One issue on the agenda was whether the barrier should include several Jewish settlements deep in the West Bank.

Israeli media said a majority of the security cabinet support building the next stretch deep in the West Bank, to include large Jewish settlements on the "Israeli" side. Reports said Mr Sharon called off the meeting and a decision to avoid confrontation with Washington.