VICTORIOUS SHARON OFFERS PALESTINIANS OLIVE BRANCH

By Safa Haeri in Israel

TEL-AVIV 7TH Feb. (IPS) As Israeli caretaker Prime Minister Ehud Barak, crushed in Thursday elections, surprised the nation by announcing at the end of a dramatic day his resignation from both the Knesset (parliament) and the leadership of the Labour Party, a victorious yet modest Ariel Sharon assured Israelis that he would keep Jerusalem as the "undivided eternal capital of Israel".

But at the same time, he called on the Palestinians to return to "dialogue, not violence".

In his short speech compared to that of Mr. Barak, Ariel Sharon stressed on restoring peace and security based on "concessions from all parts" and called on the Labour to join him in forming a national union government (NUG).

He also offered "genuine partnership" to Arab Israelis based on equality", he promised.

Analysts described his speech as "moderate and carefully prepared as not antagonising the losers" and not closing the doors on the peace negotiations.

Acknowledging defeat, a livid Mr. Barak however did not reject Mr. Sharon’s offer to form a national unity government.

Angered with Mr. Barak after Israeli police opened fire on demonstrators supporting Palestinians days after the start of the new intifida, killing 13 people, the 800.000 Israeli Arabs stayed away from the ballot boxes, not responding to the last appeals of Mr. Barak to save him from a humiliating defeat.

"This is a lesson Labour must learn", said one Israeli Arab at Abou Qosh, an Arab city near Jerusalem, where, at one o’clock local time, less than eleven per cent of the voters had voted, mostly for Mr. Barak though.

The low turn out, the lowest in any Israeli elections since the independence, had worked in favour of Mr. Sharon.

Even if the Arabs would decide to vote massively for Mr. Barak, he could not win, given the crushing gap that separated him from Mr. Sharon.

In a speech given in the Labour Head Quarters at Tel-Aviv seaside, Mr. Barak assured a frustrated, but cheering audience that though "we have lost one battle, but the war was on and not lost".

"We have been ahead of out time and I’m certain that sooner or later, people would come to this path", he said, while conceding defeat and taking full responsibility for it.

Israeli commentators immediately said by not rejecting outright the NUG, Mr. Barak may expose the Labour to an internal explosion, as influential leftist leaders such as Mr. Yosi Beilin, the outgoing Justice Minister washed aside any such possibility.

The resignation of Mr. Barak from parliament and the leadership of the party was a dramatic reminder of the same fate his predecessor, Mr. Benjamin Netneyahu suffered, after Mr. Barak defeated him in last Premier elections held almost 2 years ago.

Analysts and commentators explained Mr. Barak’s landslide defeat by his lack of confidence, a tarnished image, a constant valse of hesitations vaciliations and particularly the failure of his policy of concessions to Palestinians who, instead of providing security, answered by throwing stones and reverting to violence.

Another Barak’s mistake, according to the same sources, was to insist on peace while his rival was promoting the theme of security.

"This is a lesson we have to learn and start re-examining our policies", said Ms. Limor Livnat, a Labour deputy, saying that though the Israelis wanted peace, but not the one the Likud was seeking.

"It was a one sided election", said one Israeli commentator, noting the vote was more to sanction Barak than to say no to peace, as, according to altest polls, still more than 60 per cent support the peace process.

As some Sharon strategists would blame Mr. Barak’s massive defeat on his political mistakes and blunders, by giving too much concession to Palestinians without getting anything in response, Mr. Barak’s campaign managers put the blame on the "immaturity" from the part of Palestinian negotiators.

Questioned about the outcome of Israeli elections, two leading Palestinian negotiators remained cool, observing that the Palestinian Authority speaks with the State of Israel, "not with a person".

"We talk to the Israeli government, no matter who is in charge", said Mr. Saeb Erakat, a Palestinian negotiator, who, nevertheless, was surprised at the fact that though 70 per cent of Israelis supports the peace process have provided Mr. Sharon such an astounding victory.

"If this is what the Israeli public want, then I’m definitely worried", he told CNN, adding however that "the best and shortest way to peace was ending occupation".

Mr. Nabil Sh’at, another Palestinian peace negotiator said the new Israeli Premier must not be "judged from what he did in the past, but by what he is going to offer as a prime Minister".

Speaking at one in the morning, exactly three hours after the polls confirmed his "phenomenal victory", the new US President George W. Bush congratulated him on the phone.

"He told me the same I was elected against all expectations, no one was believing in your victory, yet here we are, I as President of the United States and you as Prime Minister of Israel", Mr. Sharon quoted Mr. Bush as having told him. ENDS SHARON WIN 7201