Olmert signals limited West Bank withdrawal

Interim Prime Minister Ehud Olmert said today he would reduce Israel's spending on Jewish settlements in the West Bank to underscore…

Interim Prime Minister Ehud Olmert said today he would reduce Israel's spending on Jewish settlements in the West Bank to underscore plans to quit some of the occupied land if he wins this month's general election.

"It is no secret that, in the coming years, we will not invest the sums that were once invested in construction and infrastructure development in areas outside the green line," Mr Olmert told a business conference in Tel Aviv.

He said "billions" now poured into Jewish settlements would be diverted to infrastructure projects in Jerusalem and the underprivileged Galilee and Negev regions.

Mr Olmert, who has headed the ruling Kadima Party since Prime Minister Ariel Sharon was incapacitated by a January 4th stroke, has hinted he would evacuate isolated West Bank settlements while cementing Israel's hold on major settlement blocs.

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Kadima is the frontrunner for the March 28th elections, buoyed by Mr Sharon's popular withdrawal last year from the Gaza Strip, another territory where Palestinians seek statehood.