Sharon says Israel will give up settlements for peace

Israel will hand over some Jewish settlements in the West Bank for peace, but the Palestinians must give up on their key demand for refugees to be allowed to return to their former homes in Israel, Prime Minister Ariel Sharon said in an interview published today.

In a broad interview with the Israeli newspaper Haaretz, Sharon said the US-led war on Iraq has opened the door to new opportunities and could make his initial call for a long-term peace deal irrelevant.