Israel's Peretz drafts Palestinian peace plan

Jerusalem, Jan 9: Israeli Defence Minister Amir Peretz, his position threatened by challengers in his Labour Party, yesterday unveiled a plan he said could lead to renewed peace negotiations with the Palestinians within six months.

Peretz's popularity has plunged after Israel's inconclusive war against Lebanon's Hezbollah group last year.

Former Prime Minister Ehud Barak launched a bid on Sunday to take over from Peretz as Labour leader and Defence Minister. The party holds an internal election in May.

Former trade union chief Peretz has vowed to stay on as defence minister and said he would take on any challengers for leadership of Labour, the second biggest party in Prime Minister Ehud Olmert's coalition government.

A ministry aide told Reuters that Peretz presented his peace proposal to Labour lawmakers today. Peretz called Olmert to brief him on the proposal before the prime minister left to visit China. It was unclear what Olmert thought of it.

The plan initially calls for the dismantling of illegal Jewish outposts in the occupied West Bank, a complete ceasefire with the Palestinians and the return of an Israeli soldier who was captured by Gaza militants in June, the aide said.

That would take six months. The second stage would involve talks with Palestinian President Mahmoud Abbas or any Palestinian leader who accepted Western principles that include prior recognition of Israel.

This condition would exclude Hamas Islamists, who took over the Palestinian government last March, and remain sworn to Israel's destruction.

Under the plan, Israel at this stage would cede control of towns and villages to the Palestinians while talks were continuing.

The third stage, lasting 18 months, would set the foundation for the creation of a Palestinian state, the aide added.

Israeli-Palestinian peace talks collapsed in 2000, just before a Palestinian uprising began.

Calls have mounted in the left-leaning Labour Party for Peretz to step aside as defence chief. Two Israeli television stations said last week Olmert planned to fire Peretz, reports the prime minister denied.

REUTERS

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