Israel will allow Palestinian parliament to set election date

JERUSALEM -- Israel would allow the Palestinian parliament to convene a special session to set a date for elections and discuss political reforms, the government said Tuesday.

Another official statement, however, harshly criticized the Palestinian leadership.

The conflicting statements reflected the divisions in Israel's center-right government, and came as the Palestinians discussed new U.S. demands for reforms that would sideline Palestinian leader Yasser Arafat.

The Palestinians have tentatively set parliamentary and presidential elections for January, and the Palestinian Cabinet had said it would ask for the special session.

A session requires Israeli permission because of travel restrictions imposed on the Palestinians during the current violence between the two sides.

In a statement, the Israeli Foreign Ministry said that in talks with Foreign Minister Shimon Peres, Palestinians had raised the issue of convening their parliament, and "Israel would respond favorably to such a request once it is put forward."

Palestinian general elections were held in January 1996 as part of interim peace accords. At the time, Palestinian residents of east Jerusalem, the sector Israel captured in the 1967 Mideast war and annexed a few weeks later, also participated in the vote.

Israel's government, headed by Prime Minister Ariel Sharon, opposes the participation of east Jerusalem residents in Palestinian elections, arguing that such a step would undermine Israel's claims to sovereignty over all of the city.

In a statement from his office relating to reports that the parliament would approve the new Cabinet appointed by Arafat in June, said "no Cabinet appointed or run by Arafat is acceptable to Israel." The statement also demanded reforms in fighting terror and corruption.

If they hold elections, the Palestinians will face new requirements from the United States. The Palestinian leadership heard details Tuesday of one new U.S. demand -- separating the elections for parliament and president, apparently as a way of sidelining Arafat.