Compromise in works on Sharon's Gaza plan

Israeli Prime Minister Ariel Sharon and rebellious cabinet members worked towards a compromise today over his Gaza pullout plan…

Israeli Prime Minister Ariel Sharon and rebellious cabinet members worked towards a compromise today over his Gaza pullout plan in a bid to avert a government collapse and satisfy US demands.

The face-saving deal in the works calls for cabinet approval "in principle" for Sharon's plan to "disengage" from conflict with Palestinians but requires a new vote before any Jewish settlements could actually be evacuated.

Mr Sharon is facing off with his main rival, Finance Minister Benjamin Netanyahu, and other hardliners over his plan to pull out of some of the territory Israel captured in the 1967 Middle East war.

Under his four-stage proposal, all 21 settlements in the Gaza Strip and four of 120 enclaves in the West Bank would be evacuated by the end of 2005.

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Politicians are trying to reach a compromise that can win a majority in Sunday's cabinet vote and mollify Israel's ally, the United States, which wants Mr Sharon's full plan implemented instead of a watered-down version backed by Mr Netanyahu.

The political crisis threatens to bring down Mr Sharon's coalition government.

Talks over a compromise appeared to bog down this evening over hardliners' demands for Jewish settlements in Gaza to continue to receive state funding even after the disengagement plan is approved, a political source said.