Labour sets Israel coalition aims

Peres and Sharon have worked together before

Israeli Labour leader Shimon Peres has stated his conditions for joining the Likud-led government of Prime Minister Ariel Sharon.

The two men on Monday discussed forming a unity cabinet, as Mr Sharon faces opposition from his own Likud bloc over plans to pull out the Gaza Strip.

After the meeting Mr Peres said Labour's key demand was a timetable for an early withdrawal.

He added that Mr Sharon had agreed to discuss such proposals.

Earlier Mr Sharon warned his Likud critics that he would call early elections if they did not support his plan for a unity government with Labour.

We must leave Gaza - we must take down the settlements Shimon Peres

BBC Middle East correspondent Paul Wood reports from Jerusalem that this could be the start of lengthy negotiations.

He says Mr Peres will want several things Mr Sharon will find it hard to grant.

Labour has been pushing for faster withdrawal from Gaza - currently planned for some time before the end of next year.

"We must leave Gaza, we must take down the settlements," Mr Peres said on Monday'.

His party is also pushing for a bigger withdrawal from the West Bank, and direct talks with the Palestinians.

GAZA PULL-OUT PLAN Pull-out from all 21 settlements in Gaza and four in West Bank Preparation period due to end by March 2005 Four-stage evacuation to be completed by end of 2005 Each stage requires cabinet vote

In return, Mr Peres offers substantial parliamentary support for the Gaza disengagement plan, and stability for Mr Sharon's government.

After the talks, Mr Sharon survived another no-confidence vote brought by his right-wing critics.

Opponents and supporters both mustered 55 votes in the 120-member Knesset.

The opposition needed 61 to topple the government.

Opposition to unity government

Ariel Sharon lost his majority last month when right-wingers angry at the Gaza plan withdrew from his coalition.

The talks on a national unity government became possible after three conditions for Labour taking part in negotiations were fulfilled:

• government acceptance of the withdrawal plan
• the far-right National Union's withdrawal from the government
• the attorney-general's decision not to charge Mr Sharon over two corruption cases.

PERES AND SHARON: PARALLEL LIVES Peres joined the socialist Mapai party, which dominated Israeli politics until 1968; Sharon's family were also members Sharon advised Prime Minister Yitzhak Rabin 1974-76; Peres served as Rabin's foreign minister Sharon won elections in 2001 and 2003; Peres lost five parliamentary elections but won 1994 Nobel Peace Prize Sharon reviled by Arabs for leading 1982 invasion of Lebanon and expanding Jewish settlements Peres seen as dove, but thought to be architect of Israel's nuclear programme

Both Mr Sharon and Mr Peres face strong opposition in their parties to the formation of a national unity government.

Our correspondent says Mr Sharon's response to Likud resistance - to back him or face elections - are scare tactics, the minimum needed to cut through the toxic atmosphere of hostility in Likud towards any dealings with the opposition.

One Likud central committee member said that Labour would be like a cancer eating into the party.

Some Labour party members are opposed to what they see as propping up Mr Sharon's government and believe the party should be pushing for new elections.

Likud and Labour formed a coalition under Mr Sharon in 2001-03.

But the two parties fell out over funding for Jewish settlements built on land captured in the 1967 Arab-Israeli war.