US, Israel disagree on way to end standoff

WASHINGTON - The United States pressed Israeli Prime Minister Ariel Sharon yesterday to ease restrictions on Palestinians, while Sharon argued back that the Palestinians had not responded to earlier gestures.

The two close allies also agreed to disagree on the exact linkage between resuming dialogue and bringing an end to six months of violence, according to a US briefing.

Secretary of State Colin Powell told Sharon that Israel must offer hope and opportunity to the Palestinians, who for months have languished behind intermittent blockades of Gaza and the West Bank, a senior US official said.

Israel says the blockade is in response to violence by Palestinians, who rose in revolt last September after peace negotiations with Israel began to collapse. More than 420 people have been killed, most of them Palestinians.

"The Secretary encouraged him to take steps to ease the pressure ... We're telling him that you've got to deal with these things," added the official.

The US says Israel should allow goods and people to move more freely in the Palestinian areas and release more than $US50 million ($121.41 million) in taxes owed to the Palestinian Authority.

The official said Sharon's response was: "I'm doing some of these things. I'm trying some of these things but I'm not seeing anything from the other [Palestinian] side."

Sharon said on his way to Washington on Monday that he wanted negotiations with Palestinian President Yasser Arafat. "But in this matter, it must be known there can be no diplomatic negotiations so long as the terror continues. It is simply impossible. For diplomatic negotiations, there must be an atmosphere of quiet and security."

Powell also called for an end to violence to a speech to American Jews yesterday but the US has not made the negotiations conditional on restoring calm.

Asked if Israel and the US were in full agreement on the linkage, the US official said: "I wouldn't say that."

"We see direct talks as very important. We understand that it's difficult for Sharon to take some of these steps with the violence continuing. We understand how important it is to reduce the violence ... but we also understand it's important to give people a sense of confidence and trust."

Israel has also repeatedly ignored US requests that it release the tax money, which the Palestinian Authority badly needs to pay police and civil servant salaries. Israel's Finance Ministry said yesterday that it would not hand over the funds until the violence ends.

The US has argued that depriving the Palestinians of hope and of their livelihoods leads to frustration, and frustration leads to violence. "It's important to take steps that improve security, not steps that lead to frustration," the official said.

Sharon also had talks with CIA Director George Tenet, National Security Adviser Condoleezza Rice and Defence Secretary Donald Rumsfeld. He was to meet President George W. Bush at the White House today.

The White House endorsed Powell's call for a lifting of economic restrictions. "The President would like to see an easing of economic pressure. The President would also like to make certain that the Palestinians take steps to end the violence," said spokesman Ari Fleischer.

- REUTERS

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