New Israel government to 'reduce' settlements

A coalition deal signed by prime minister designate Ehud Olmert's Kadima party and the centre-left Labour after weeks of fraught talks has enshrined his priority to separate from the Palestinians with or without their agreement.

The draft programme of the new administration, widely quoted in the Israeli media on Friday, vowed "to shape the permanent borders of the state as a Jewish state with a democratic majority".

"Israel's territories, whose borders will be determined by the government, will entail reducing the areas of Israeli settlement in Judea and Samaria (the occupied West Bank)."

Olmert made the March 28 election a de facto referendum on his determination to fix the permanent borders of Israel during his four-year term of office.

Labour, like all potential coalition partners, has had to accept the outline of his plan that could see around 70,000 Jews uprooted from the occupied West Bank but the largest settlement blocs built on Arab territory retained.

The government's draft pledged to work to shape the borders "through negotiation" with the Palestinians on the basis of mutual recognition, signed agreements, an end to violence and the disarmament of armed factions.

Should the Palestinians not measure up, however, Israel would be compelled to take action on the basis of a "national agreement" and consent with foreign allies, chiefly Washington, it said.

Israel and the West are boycotting the Hamas-led Palestinian government, demanding that the Islamists must renounce violence, recognise the Jewish state's right to exist and abide by previous signed agreements.

Palestinian Authority president Mahmud Abbas, who was in Paris on Friday on a European tour aimed at securing continued financial aid and restarting stalled Middle East peace talks, vigorously condemns Israeli unilateralism.

Olmert, however, is expected to present his so-called "convergence plan" to US President George W. Bush next month and petition for Washington's support, on his first overseas visit as premier.

The ambitious border project is seen as a natural successor to former prime minister Ariel Sharon's disengagement plan that saw Israel remove all its soldiers and settlers out of the Gaza Strip last year.

But some observers believe that Olmert will have to settle for less grandiose achievements with Hamas in power, uncertain international support and Kadima's broad-based coalition which could yet become unstuck.

Rather than set final borders, some believe he may have to be content with a limited evacuation of small, isolated settlements not taken in by Israel's controversial West Bank separation barrier which he has vowed to complete.

An opinion poll published in the Yediot Aharanot newspaper on Friday found that most Israelis are already disappointed in Olmert.

Fifty-five percent of respondents said they were dissatisfied with the composition of the new cabinet and 51 percent displeased with his performance regarding its formation.

Thursday's coalition agreement with Labour, following a previous deal with the Pensioners party, gives Olmert a support base of 55 seats in the 120-member parliament, six short of the minimum majority of 61.

To that end, negotiations are continuing until the May 4 cut off date for a new government between Kadima and members of the ultra-Orthodox Shas, which has 12 seats, and United Torah Judaism, another Orthodox grouping with six MPs.

Although the extreme right-wing Ysrael Beitenu remains another potential partner, Israel's justice ministry said its leader Avigdor Lieberman cannot serve as public security minister, pending a police inquiry into corruption.

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