Foes take a hard line in Egypt

TABA - Israeli and Palestinian negotiators met yesterday to start a new round of peace talks, but there appeared little chance of a breakthrough ahead of Israel's prime ministerial election in two weeks.

An Israeli political source close to the talks in Egypt's Taba resort said Prime Minister Ehud Barak would not make further concessions.

On the Palestinian side, senior negotiator Saeb Erekat said gaps remained wide.

A deal with the Palestinians could boost Barak's re-election chances by effectively turning the vote into a referendum for peace and sharpening the differences between the Labour Party leader and hawkish Likud chief Ariel Sharon.

But an agreement could also hurt Barak if voters thought he had made too many concessions at a time opponents charge that, as head of a minority government, he has no mandate to forge a deal on the wrenching issues at the heart of the conflict.

Further dampening hopes for a speedy deal, an adviser to Sharon repeated the Likud leader's vow not to be bound by any accord if he wins the election.

Earlier, Erekat said any deal had to address both the right of return and financial compensation for Palestinians who fled or were forced to leave their homes during the Arab-Israeli war at the creation of the state of Israel in 1948.

At least 310 people, mostly Palestinians, have been killed in nearly four months of a Palestinian uprising.

- REUTERS

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