Jerusalem car bomb sets grim mood for talks

The Israeli Prime Minister-elect, Mr Ariel Sharon, has called on the Palestinian Authority to ensure a complete end to "terror…

The Israeli Prime Minister-elect, Mr Ariel Sharon, has called on the Palestinian Authority to ensure a complete end to "terror and violence" by militant extremists. This follows a car bomb explosion in a Jewish neighbourhood of Jerusalem yesterday.

The blast occurred near the ultra-Orthodox district of Mea Shearim in West Jerusalem. It was initially estimated that 10 people were injured but a later report said a woman passer-by was taken to hospital suffering from shock.

Police said two suspects had been arrested.

Although damage was limited, the bomb was described as very large. "The explosion blew every piece of the car into different directions . . . I think it was a huge miracle that people weren't killed," a senior Jerusalem police officer said.

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The explosion took place only two days after the prime ministerial election. "I will try to advance the peace process but that depends on an absolute halt to violence," Mr Sharon said on Israeli television. "The peace negotiations are important and the government will do everything to that end but terrorism and violence must cease."

He added: "We are faced with a phenomenon of terrorism and the Palestinian Authority must fulfil its task, according to the Oslo accords, to bring it to an end." Mr Sharon's defeated rival, Mr Ehud Barak, who still officially holds the office of Prime Minister pending the formation of a new government, said: "This [the car bomb] proves that the Palestinians will try to dictate to the new government about the peace process."

At this stage, 99.9 per cent of the votes in Tuesday's election have been counted, with only the absentee ballots from soldiers, diplomats and other groups remaining. It was Israel's first election exclusively for the post of prime minister and turnout was the lowest in the country's history.

A total of 2,664,255, or 61 per cent of the electorate, cast their ballot, compared with 3,372,952, or 78.7 per cent, in the 1999 general election. Mr Sharon received 1,618,110 votes (62.5 per cent) and Mr Barak 967,760 (37.5 per cent) of the valid poll.

Over 70,000 votes were disqualified. In the election, three ballot papers were provided: one each for the candidates and a third, spare ballot which was blank. Casting this so-called "white ballot" was thought to be a form of protest by disillusioned Barak supporters who could not bring themselves to vote for Mr Sharon.

In Jerusalem, Mr Sharon received 78 per cent of the vote. In Tel Aviv, the figure was 52 per cent. In the Jewish settlement of Psagot, close to the Palestinian town of Ramallah in the West Bank, Mr Sharon got 100 per cent of valid votes cast.

Mr Sharon has turned down a demand from the Palestinian leadership that peace talks resume at the point they stopped at under Mr Barak, a senior adviser to Mr Sharon said. "There were offers by the previous government. All that was said, either verbally or as ideas, does not commit Israel or any government," said Mr Zalman Shoval, a former Israeli ambassador to the US.

On the domestic front, Mr Sharon has appointed a negotiating team to meet with the numerous parties in the Israeli parliament or Knesset. Under Israeli law, he must gain sufficient support to get the 2001 budget approved by March 31st, otherwise he will have to step down. He is endeavouring to form a national unity coalition with the Labour party but that party is involved in finding a replacement for Mr Barak who resigned as leader after the election. He also said he would give up his seat in the Knesset but it is now reported he will not do so.

Meanwhile, the US ambassador to Israel has warned that the Palestinian economy is on the verge of collapse and this could lead to chaos and more violence. The Palestinian Authority must be saved from bankruptcy in order to preserve stability in the region, Mr Martin Indyk told the American Jewish Committee in Jerusalem. Reuters adds: Mr Barak and former prime minister Mr Shimon Peres will conduct negotiations with Mr Sharon to try to form a national unity government, a Peres spokesman said yesterday. Spokesman Mr Yoram Dori said Mr Barak and Mr Peres would lead a Labour party team in the coalition negotiations.

Mr Sharon has appointed a three-man team to conduct the talks for his Likud party.