Deal emerging for Peres to join Sharon's govt

A deal was emerging today for elder statesman Shimon Peres to leave the 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 Peres would likely be charged with developing the outlying Galilee and the Negev regions if Sharon retains power.

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

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

"The real change is not in the Labour Party. The real change is in the Likud Party," he added. "Mr. Sharon took a different direction for a Palestinian state. He wants to continue the peace process."

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

That speculation intensified today, after a Peres protege, MP Dalia Itzik, left Labour to defect to the Sharon camp.

"It looks like a package deal," Labour's secretary-general, Eitan Cabel, told Army Radio, saying it now appeared likely Peres would leave as well. "We spoke about their remaining (in Labour) and not defecting to another party, but apparently things were already sealed, and the talks with us were nothing but a smokescreen."

Other party-jumping incidents dominated Israeli news late yesterday and early today.

Shelly Yachimovitch, a well-known broadcast journalist, announced her plan to contend for a slot on the Labour party list. Sharon successfully wooed Professor Uriel Reichman, chairman of the middle class, secular Shinui party.

Also today, a Sharon ally said the prime minister hopes to clinch a final peace deal with the Palestinians if re-elected - the clearest sign yet of Sharon's agenda for a possible third term.

"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.

"We understand that to reach a final status agreement, there is no choice ... but to create two states for two nations," Sheetrit told Israel Radio.

Last week, 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 and the eventual creation of a Palestinian state. Days later, parliament's term was cut short and early elections were called for late March.

Kadima, dominated by former Likud MPs, held its first formal meeting yesterday. But while it sketched out broad policy goals, including peaceful co-existence with a future Palestinian state, it did not go so far as to declare the creation of that state as a goal for the coming term.

Sheetrit became more specific in his comments today.

"I think in this term, the prime minister, having taken the bold step of leaving Gaza ...is ripe to reach a final status agreement," he said.

Recent polls show Sharon headed toward a third term and able to put together a moderate coalition government with the Labour Party, which also supports a final peace deal.

Palestinian Planning Minister Ghassan Khatib played down the significance of Sheetrit's remarks, saying 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," Khatib said.

In practice, 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.

"I think these statements are public relations and election-related kind of statements," he added.

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 would honour results of Fatah primaries in the West Bank last week, but has not decided whether voting should take place in other areas.

"Elections have been done in some places, and we deal with that in a positive way," Abbas said after returning from a trip to Spain. "For places which have not held their primaries, we will find a suitable solution."

Some Fatah officials said earlier today that Abbas ordered voting suspended, but his aides denied this.

Yesterday, Gaza primaries were cancelled after gunmen attacked polling stations. The cancellations embarrassed Abbas, who has been unable to restore order in the coastal strip - or in his own party - ahead of a stiff electoral challenge from the Islamic militant group Hamas.

Primaries for Fatah's parliament list went ahead in Jerusalem today, and voting is planned for the West Bank city of Hebron on Friday.

At the A-Ram polling station north of Jerusalem, Abbas adviser Ahmed Abdel Rahman said the confusion at the polling stations was instigated by people who don't want change. "Some people do not want democracy," he said.

"(However) we are determined to have these primaries today."

Mohammed Dahlan, a top Fatah official in Gaza, said a new primary should be arranged there.

The upcoming primaries are expected to solidify wins by younger members of the Fatah movement who swept aside Fatah old-timers in primaries in five West Bank districts last week.