Uri Shani, a close confidant of Prime Minister Ariel Sharon, met at the end of the week with opposition Labor party leader Shimon Peres and veteran Labor party Knesset Member Haim Ramon.



The revelation of the meeting, which was denied by Peres aides, has led to anger and tension in the Labor party.



Chairwoman of the Labor faction in Knesset, MK Dalia Itzik, said that it would be best for Labor party members to hold off on coalition talks with the Likud until after the Attorney General announces his decision regarding criminal charges that may be filed against Prime Minister Sharon.



Labor MK Yuli Tamir accused Peres of "crawling" into a Likud-led coalition. She said that such behavior is counter to the wishes of the left-wing demonstrators who flooded Rabin Square last Saturday night.



MK Amir Peretz, whose Am Echad party this past week merged with the Labor Knesset faction, even threatened to withdraw from the merger if Labor joins the Likud government.



Speaking with INN prior to the revelation of the secret Peres-Shani talks, Likud hawk Minister Uzi Landau said he told Prime Minister Sharon that the current coalition is "good for the people of Israel." If the Sharon plan for withdrawal from Gaza is approved by the government, Landau warned, the National Union and National Religious parties will bolt and Labor will join; but a government of Sharon, Peres and Yosef (Tommy) Lapid, head of the Shinui party, "will be unable to fight terrorism," Landau said.



It now appears likely the Prime Minister will present his alternate Gaza withdrawal plan to the government during the May 30th cabinet meeting. In addition to courting Labor, Prime Minister Sharon has also recently sent feelers out to the hareidi Shas and United Torah Judaism parties.