Sharon weighs Gaza olive branch

Sharon insists his withdrawal plan will go ahead as planned

Israeli PM Ariel Sharon says he would consider co-ordinating his Gaza pullout plan with new Palestinian leaders if they moved to curb attacks on Israelis.

He said Israel could liaise with the Palestinians on security measures and the areas of Gaza to be evacuated by all Jewish settlers.

While Palestinian leader Yasser Arafat was alive, Mr Sharon refused to discuss his plan with the Palestinians.

The Palestinians are aiming to hold presidential elections in January.

Arafat's death on 11 November has fuelled hopes of a revival in the Middle East peace process, but also fears of violence between Palestinian factions vying for power, correspondents say.

DISENGAGEMENT PLAN Israel will pull out all its 8,000 settlers from 21 fortified enclaves in Gaza Israel will maintain control of Gaza's borders, coastline and airspace Four isolated West Bank settlements also to be evacuated

"If in time we see that there is a Palestinian leadership that is willing to fight terror, we can have security co-ordination... and perhaps co-ordination on handing over the territory from which we withdraw," Mr Sharon told a meeting with officials from his Likud party.

"We are in a period of non-stop events with elections in the United States, the death of Arafat, and perhaps new diplomatic possibilities for the future," he said.

Israel wanted a diplomatic agreement that was likely to bring peace and was "ready to pay a heavy price".

But there would be no concessions on security matters, he said.

Compensation

Meanwhile, the man in charge of compensation and housing for Jewish settlers forced to leave the Gaza Strip has given details of the plan's progress.

Many settlers remain deeply opposed to withdrawal

Yonatan Bassi told reporters in Jerusalem that up to a third of the estimated 8,000 settlers affected had asked for details on how they could get compensation, although many still remain opposed to the move.

Israel plans the move for June or July, after almost 40 years' occupation.

Families will get up to $300,000 in compensation. They will be allowed to go where they like, Mr Bassi said, and that includes Jewish settlements in the occupied West Bank.

However, following Arafat's death Mr Bassi acknowledged that changes in the Palestinian leadership could lead to changes in the plan itself.