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War On Terror: Israel's terms for deal.

Byline: MICHELE GERSHBERG

ISRAEL laid out its conditions for the creation of a Palestinian state yesterday.

Prime Minister Ariel Sharon said it would have to be created as part of a treaty that fulfils "all of our security demands".

He said: "We are talking about a demilitarised state, a state with a police force, a state where we will deploy (forces) on its external borders.''

There would be ban on signing agreements with countries hostile to Israel and Israel would keep Jerusalem as its capital.

But Palestinian cabinet minister Hassan Asfour said: "A Palestinian state is not a gift from Sharon and is not negotiable.''

And the hardline YESHA council of Jewish settlers in the West Bank and Gaza Strip where Palestinians want to make their homeland - said it would "fight... any attempt to establish a Palestinian state".

Foreign minister Shimon Peres said Israel favoured an independent state and would stop the targeted killing of Palestinian militants if Yasser Arafat handed over 100 troublemakers.

In Downing Street yesterday King Abdullah of Jordan told Tony Blair the peace process had to be put back on track very quickly.

An official said he told Mr Blair: "An equitable solution for the Palestinians is the only guarantee of stability in the Middle East. A Palestinian state is inevitable."

CAPTION(S):

CONDITIONS: Sharon
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Publication:The Mirror (London, England)
Date:Oct 17, 2001
Words:219
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