Israeli cabinet gives conditional nod to Wye River deal

The cabinet also approved maps of the West Bank zones to be turned over to Palestinian control under the accord. Netanyahu threatened to annex parts of the West Bank if the Palestinians fail to carry out their obligations under the Wye accord.

Speaking after the cabinet meet, he said that after the three-month implementation period for the accord, 8220;if there is the least deviation from the Palestinians8217; obligations8230; we reserve the right to annex security zones, areas near Jerusalem andJewish settlement.8221;

He specifically linked the threat to any move by the Palestinians to unilaterally declare the creation of an independent state. Netanyahu said the agreement would stop altogether if the Palestine national council, the Palestinian parliament-in-exile, does not hold a formal vote by mid-December to revoke clauses in the PLO founding charter that call for Israel8217;s destruction.

Under the agreement, the PNC is to convene to reaffirm changes it voted on in April 1996 and does not mention a vote. Any additional pull-back would turn over no more than 1 percent of the West bank to Palestinian leader Yasser Arafat8217;s control.

Palestinian officials said the conditions were violations of the accord signed in the presence of US president Bill Clinton in Washington on October 23.

8220;We spoke to the American administration and filed an official complaint regarding the conditions. We asked Netanyahu before to stop the threats and conditions, but he chose threats, which means he does not want thereto be trust between us,8221; said an angry Saeb Erekat, a senior Palestinian official who helped negotiate the accord.

Meanwhile, the stipulations, and the threat to annex West bank land if the Palestinians do not comply, did not ease the concerns of one of prime minister Benjamin Netanyahu8217;s key constituencies 8212; right-wing Jews who live in settlements in the West bank.

The settlers rejected the cabinet8217;s decision on Wednesday and said they would take as much West bank land as they could before Israel begins its promised troop withdrawal.

Meanwhile, Netanyahu8217;s adviser David Bar-Illan said the pull-back would likely not begin for at least another week, following a parliamentary vote scheduled for Tuesday.

Israel renews construction bid

Israel published a tender for the construction of 1,025 homes at a disputed Jewish settlement site in Arab East Jerusalem, a day after approving a new interim peace deal.

The decision drew an angry response from Palestinians, who say Israeli settlement buildingviolates peace accords.

8220;If the Israeli side continues in this way it means they want to lead the relationship with Palestinians to confrontation,8221; Palestinian negotiator Hassan Asfour said.

A government advertisement in the 8220;Ha8217;aretz8221; newspaper called for offers from contractors to build at Har Homa, known in Arabic as Jabal Abu Ghneim. The groundbreaking at the hilltop site in March 1997 plunged peacemaking into crisis.

8220;The israel land authority and the housing ministry are calling for offers8221; for the development and construction of 8220;1,025 housing units8230;in the Har Homa neighbourhood of Jerusalem,8221; the advertisement said.

Israel plans to build 6,000 homes for settlers at the site. Prime minister benjamin Netanyahu has said Jews would be able to move into the neighbourhood by 2000.

Palestinians want East Jerusalem as the capital of a future state. Israel claims it as part of its indivisible8217; capital.