After election victory, Sharon rebuffs Arafat's offer to meet

JERUSALEM -- A day after his election victory, Ariel Sharon on Wednesday rebuffed an offer by Yasser Arafat to resume peace talks -- an indication the Israeli prime minister will stick to his tough policies in his second term.

In Tuesday's vote, Sharon won a ringing endorsement for his military crackdown on the Palestinians, and his right-wing supporters want to see him take an even tougher line. However, an Israeli government dominated by hawks could lead to friction with the United States.

The composition of Sharon's coalition will shape the next round of the Mideast confrontation.

If he builds a right-wing coalition with his natural allies, he'll find himself surrounded by Cabinet ministers advocating explosive measures such as sending Arafat into exile.

If he persuades moderate and centrist parties to join him, the debate could shift to a U.S.-backed peace proposal that calls on Israel to make such concessions as freezing the growth of Jewish settlements in the West Bank and Gaza and agreeing to an eventual Palestinian state in those areas.

'If he's ready, I'm ready'

Commenting for the first time on the Israeli vote, Arafat said Wednesday that he was ready to resume peace talks. Asked by Israeli TV's Channel 10 if he was willing to meet with Sharon, his longtime nemesis, Arafat said: "Tonight. If he's ready, I'm ready."

Sharon's office said in response that Arafat funds and encourages militants attacking Israelis and that the Palestinian leader "is not and will not be a negotiating partner." Israel will only negotiate with Palestinians not involved in violence, the statement said.

Sharon, who spent Wednesday at his Negev Desert sheep ranch, says he wants a broad "unity government" but that may prove impossible. The Labor Party, which backed him for 20 months until bolting in November, says it's headed for the opposition.

Sharon's Likud Party almost doubled its parliamentary strength, from 19 to 37 in the 120-member parliament. Center-left Labor -- the party that founded Israel -- posted its worst-ever showing, dropping from 26 to 19 seats. Labor advocates a return to peace talks, even with Arafat.

Despite Labor leader Amram Mitzna's pledge not to join Sharon, some say he could be tempted by ideological concessions such as a stated willingness to dismantle some Jewish settlements.

Labor's elder statesman Shimon Peres, who served as foreign minister while his party was in Sharon's coalition, did not rule out another broad-based government, but only if it moved toward peace. "A national unity government is good, but not if you're marching in place," he told Israel TV.

Another potential partner is Shinui, which rode a wave of middle-class discontent with the special privileges afforded to the ultra-Orthodox, going from six to 15 seats. But Shinui says it won't join Sharon if religious parties are also in the government.

"There's no doubt that the Likud can go and establish a right-wing, nationalist government based on yesterday's results," said Limor Livnat, a Likud Cabinet minister. "But the prime minister has said all the way that he supports with all his heart ... a broad, national unity government because the challenges we are facing now are especially difficult."

Israeli commentators also said Sharon wanted to avoid limiting his political options. "A right-wing government would severely reduce the political maneuvering in facing the Americans and make it difficult for (Sharon) to find a way out of the economic collapse," columnist Nahum Barnea wrote in the Yediot Ahronot newspaper.

Sharon has said that if the violence stops, he could envision a limited Palestinian state on the land the Palestinians currently hold. But that's far short of what the Palestinians demand, and U.S. officials have also been critical.

Secretary of State Colin Powell, in a remark seen as directed toward Sharon's plan, said the Palestinian state would have to be a "real state, not a phony state that's diced into a thousand different pieces."

Many Palestinians fear the election results will embolden Sharon, and lead to the destruction of the Palestinian Authority and a permanent Israeli military presence in the West Bank and Gaza.

With the international spotlight on the standoff in Iraq, there's little prospect for a quick resumption of Mideast peace negotiations.

Many Palestinians also believe that Sharon could use the cover of any U.S. military attack on Iraq to step up military action against the Palestinians.

Sharon has presided over military offensives against militant groups accused of deadly attacks on Israelis, and in June troops reoccupied nearly all West Bank population centers.