January 2, 2003 -- JERUSALEM - Israel is secretly negotiating with the top deputy of Yasser Arafat, and has discussed the creation of a Palestinian state on most of the West Bank, it was reported yesterday.
There was no confirmation or denial by Israel or Palestinian officials of the report in the influential Saudi newspaper al-Wattan, which was based on sources in Washington.

An Israeli official, questioned by The Post about the state of secret talks, would only say, "Prime Minister [Ariel] Sharon has been making contacts with the Palestinians all the time."

But emissaries of Sharon and Arafat deputy Abu Mazen are believed to have discussed the outlines of a peace accord - and President Bush has been kept abreast of their progress.

The Saudi report said Sharon was willing to accept a Palestinian state on 53 percent of the West Bank, and a substantial portion of the Gaza Strip.

The Israeli land turnover would be phased in over 10 years, according to the report.

The Palestinians were seeking a temporary state on 65 percent of the West Bank and Gaza territory.

Abu Mazen also proposed that parts of Jerusalem, including the bitterly contested Temple Mount, which is holy to Muslims, be transferred to joint control of Jordan and the Palestinian Authority.

Sharon was said to be opposing any concessions in Jerusalem.

Abu Mazen, the second-highest ranking PLO official, has long been viewed in the Mideast as a potential successor to Arafat. With Post Wire Services

Quoted:
This will never happen, because it's not what the Palestinians want. They want the death of Israel and their people. Thats it. Bottom line. It will never be over down there until one of the sides are wiped out.