Prime Minister Ariel Sharon updated ministers at today's weekly cabinet session on his meeting last Wednesday with three senior Palestinian officials. Sharon's direct diplomacy efforts came days before his scheduled trip to meet with President George W. Bush in Washington, and as Foreign Affairs Minister Shimon Peres continued his own talks with Palestinian leaders at the World Economic Forum in New York.

Sharon's aides insisted that the Prime Minister's talks with Palestinian Legislative Council Speaker Ahmed Qurei (Abu Ala), Yasser Arafat's deputy Mahmoud Abbas (Abu Mazen), and financial adviser Muhammad Rashid were not diplomatic in nature. In the meeting Sharon presented the Palestinians with Israel's security demands: the arrest of wanted terrorists including the assassins of the late Tourism Minister Rechavam Ze'evi, the dismantlement of terrorist organizations, the collection of illegal weapons, and effective actions to prevent terror attacks and to halt incitement.

Sharon told the Palestinians that he didn't agree with the proposal being negotiated between Peres and Abu Ala, which reportedly calls for the immediate creation of a Palestinian state on 42% of the territories and subsequent negotiations for final status arrangements. Sharon said that if an agreement was to be reached, it would only be reached with him. He reportedly offered, instead, a long-term armistice, after which negotiations would continue based on the success of that agreement's implementation.

The Palestinians made four demands of Sharon: an Israeli commitment not to reenter Area A, the end of targeted killings, the removal of closures and blockades on Palestinian cities, and the end to Israel's siege of Arafat in Ramallah. Sharon reportedly replied that Israel's actions would be conditioned on the Palestinians fulfilling their commitments to fight terror infrastructure.

Sharon reportedly added that if he had to choose between targeted killings and Israeli funerals, there would be no difficulty making the decision. He did, however, emphasize that he did not intend to bring about the collapse of the Palestinian Authority.

Wednesday's meeting at the Prime Minister's home in Jerusalem, which came at Sharon's request and which was his first direct contact with Palestinian leaders since his election, included the participation of his son, Omri, and his military aide, Brig.-Gen. Moshe Kaplinsky. Palestinian sources said that Yossi Ginossar, who has served recently as a conduit between Defense Minister Binyamin Ben-Eliezer and Arafat, was also present at the meeting. The Palestinians added that Omri Sharon met directly with Arafat earlier in the week, ynet reported.

Arafat told reporters on Saturday that he had given his approval to the meeting of the Palestinian leaders with Sharon. "As I have already said, I gave orders to continue efforts and retain contact with the Israelis at all levels, and through all means," Arafat said.

Palestinians optimistic at beginning of dialogue
A senior Palestinian official told Maariv that he was optimistic regarding the possibility of reaching an agreement with the Sharon government. He added that this was the first time he had had seen signs of hope in a year and a half. Palestinian sources told Yediot Aharonot that though the meeting did not lead to diplomatic breakthroughs, it did represent the "beginning of a dialogue" between the sides.

But other Palestinian officials expressed surprise and anger at the meeting of their colleagues with Sharon, the Jerusalem Post reported. PA Information Minister Yasser Abed Rabbo charged that despite the talks, Sharon's policies had not changed. Palestinian senior negotiator Saeb Erekat was reportedly kept in the dark about the meeting, the paper said.

A political source told the Jerusalem Post that Sharon's meeting with the Palestinian leaders was "an important move to take before meeting Bush" in Washington this week. The source said that Sharon wanted to come across as someone with a diplomatic agenda, who was actively pursuing a cease-fire and not just taking actions against Arafat.

The source added that Sharon's initiative "takes the wind out of the sails" of critics at home who charged that the Prime Minister wasn't actively pursuing peace initiatives. Media analysts also suggested that Sharon was demonstrating that he was in total control of Israel's diplomatic efforts.

Peres, interviewed in New York by Army Radio, said that Sharon had informed him of his meeting with the Palestinians only after it took place, but that he approved of the talks, as it was important to maintain dialogue at all levels. Peres denied media reports that, in his own talks with Abu Ala he was finalizing the terms of an agreement. "We have not reached an agreement. We are talking about problems," he said.

Maariv reported that Sharon's reported dismissal of the so-called Peres-Abu Ala document was only a tactical move. Political sources said that there is a quiet agreement between Sharon and Peres over most of the clauses of the agreement being discussed, except for the suggested timetable for implementation of the final status arrangements, the paper said.

Criticism and praise for Sharon's talks
Right-wing ministers and politicians criticized Sharon's meeting with the Palestinian officials. "We shouldn't continue with this dangerous method of awarding a prize to violence with negotiations," said Tourism Minister Benny Elon (National Union).

National Religious Party chairman Yitzhak Levy charged that "the government is negotiating under fire, there are negotiations under terror, and there is no break in the terror."

The Yesha Council, the settlers' organization representing Jewish communities in Judea, Samaria and Gaza, charged that Sharon's "secret meeting with heads of the Palestinian Authority hurts Israel's security and encourages terror."

Interior Minister Eli Yishai (Shas) praised Sharon's meeting. Construction and Housing Minister Natan Sharansky (Yisrael Ba'aliya) supported the talks "as long as they don't include discussions or concessions in the diplomatic realm and only relate to efforts to end terror."

Knesset Speaker Avraham Burg "congratulated the Prime Minister" on the talks. Referring to the possibility that he would soon address the Palestinian Legislative Council in Ramallah, Burg expressed the hope that Sharon would approve of the move, as direct talks are "the only way to find a solution to the conflict."

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