Sharon ready to recognise fully demilitarised Palestinian state

Israeli Prime Minister Ariel Sharon said, in remarks made public Saturday, that he would be willing to recognize a fully demilitarized Palestinian state without definitive borders, if Palestinians curb terrorist activities.

But, in an interview with Newsweek magazine, he dismissed diplomatic efforts in the Middle East by the international "quartet" that includes the United States, Russia, the United Nations and the European Union, as a non-starter.

"I am ready, if they have taken steps against terror, to recognize a fully demilitarized Palestinian state without final borders -- having only police equipped with light weapons," Sharon said.

"Israel will control the external borders and will have the right to fly over the territory," he explained. "Now we come to phase three: if there's no terror whatsoever, then we will have to decide about the final borders."

The proposal came as Israel is heading for a parliamentary election later this month, with Sharon maintaining a comfortable lead in opinion polls.

As many as 2,874 people, including 2,134 Palestinians and 684 Israelis, have been killed in Israel and in Palestinian territories since the beginning 28 months ago of a Palestinian uprising that has undercut efforts to find a peaceful settlement in the region.

With the death toll rising almost daily, the Israeli leader saw no future for "quartet" proposals that call for an end to violence and the implementation of confidence-building measures between the two sides to help restart the peace talks.

"Oh, the quartet is nothing!" he said. "Don't take it seriously! There is (another) plan that will work."

He insisted that Palestinian leader Yasser Arafat should be removed from any position of influence and a prime minister should be appointed to lead the Palestinian Authority.

Fundamental reform of Palestinian security organizations should also be implemented, the prime minister argued.

"Then there are problems on the financial side," he continued. "I think our estimate of Arafat's property is about two billion dollars. Once the reforms have been completed, there should be free and democratic elections."

Sharon did not elaborate on plans he had with regard to Arafat's assets. But he indicated that Israeli-Palestinian talks could have already been under way, if Arafat had been replaced and "we had had somebody to talk to."