DATE=11/9/2003

TYPE=CORRESPONDENT REPORT

TITLE= ISRAEL / LEBANON (S)

NUMBER=2-309604

BYLINE=ROSS DUNN

DATELINE=JERUSALEM

CONTENT=

INTRO: A meeting of the Israeli Cabinet is underway to vote on a controversial exchange of prisoners with the militant Islamic group Hezbollah in Lebanon.

Ross Dunn reports from Jerusalem.

TEXT: The Israeli Cabinet is meeting to vote on a proposal to bargain with one of the country's most hated enemies in order to save the life of just one man.

The Prime Minister, Ariel Sharon, asked his Cabinet to approve an exchange of prisoners with the Hezbollah, a group that has sworn to destroy Israel and is regarded by the State Department as a terrorist organization.

Under the proposal, Israel would agree to set free hundreds of Lebanese and Palestinian prisoners in return for Israeli businessman Elhanan Tannenbaum kidnapped by the Hezbollah three years ago.

The deal, arranged with the help of German mediators, also includes the bodies of three Israeli soldiers who were kidnapped and killed by the Hezbollah.

Some ministers are opposed to the offer saying it may only encourage the Hezbollah to kidnap more Israelis in order to secure the release of other Lebanese and Palestinian prisoners. (Signed)

NEB/RD/KBK