DATE=5/5/02

TYPE=CORRESPONDENT REPORT

TITLE=ISRAEL-PALESTINIANS (L)

NUMBER=2-289436

BYLINE=ROSS DUNN

DATELINE=JERUSALEM

CONTENT=

VOICED AT:

INTRO: Israeli Prime Minister Ariel Sharon is visiting the United States with a peace plan that proposes excluding Palestinian leader Yasser Arafat. But early indications are that Mr. Sharon will have a tough time convincing President George W. Bush. Ross Dunn in Jerusalem has more on the story.

TEXT: Mr. Sharon is visiting the United States intent on proposing that the Middle East peace process be re-started without Mr. Arafat.

The Prime Minister wants to establish a regional conference of Middle Eastern states that would meet periodically to resolve problems.

Mr. Sharon believes that such a forum is the only viable alternative, following the collapse of bi-lateral talks with the Palestinians 19-months ago and the start of violent clashes.

As part of his information offensive, the Israeli leader is bringing a report that he believes contains "damning" evidence linking Mr. Arafat directly to terrorist attacks against the Jewish State.

Mr. Sharon wants to convince President Bush that Mr. Arafat is no longer a worthwhile negotiating partner and should be replaced with a more moderate leader.

But while Mr. Bush has been critical of the Palestinian leader, reports published in American newspapers suggest that the White House believes there is no alternative at this time.

The New York Times reported a senior Bush administration official as saying Mr. Sharon has no choice but to engage in direct talks with Mr. Arafat.

Under Mr. Sharon's plan, Israel will agree to end Israeli military action inside Palestinian areas, if terrorist attacks are halted. He is calling for the Palestinian Authority to rebuild its institutions and leadership that could begin negotiations on the establishment of a Palestinian state. (SIGNED)

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