Prime Minister Ariel Sharon said again last night that he accepts a Palestinian state. In the framework of a permanent agreement, Sharon told Channel Two television, there is no alternative other than the establishment of such an entity. Regarding the future of Jewish communities in Yesha (Judea, Samaria and Gaza), the Prime Minister said that the topic would be a matter for negotiations. Two years ago, when running for Prime Minister against Ehud Barak, Sharon told Arutz-7 in no uncertain terms, "No community in Yesha will be dismantled."



A leading supporter of the Prime Minister, Communications Minister Ruby Rivlin, told IMRA afterwards that he opposes a PA state. Education Minister Limor Livnat, also considered to be in the Sharon camp, similarly said today that she is against a PA state.



The Forum for the Preservation of the Likud's Values - headed by Moshe Feiglin's Jewish Leadership faction - sent a letter to Sharon today, saying it was stunned to hear him take a position contrary to that of his party. Feiglin is the dark horse in the campaign for Likud leader.



"If elected Prime Minister, I am committed to immediately abolishing legislation which imposes tax in Israel of foreign source income of olim [new immigrants]." So wrote Binyamin Netanyahu yesterday, in response to a query on the matter. He said today that taxes in general must be lowered to a ceiling of 35%, as in other industrialized countries, and that this rate would guarantee higher tax collection rates and fewer attempts to cheat the tax authorities. Regarding the ongoing Oslo War, Netanyahu said, "We will have to change over from 'deterring' to 'defeating,' and cannot continue with this war of attrition."