Word: likud
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...month to discuss the foundering Middle East peace process. One obstacle is the unresolved question of Taba, the 250-acre patch of Sinai Desert coastline claimed by both Israel and Egypt. Peres is ready to submit the matter to international arbitration, as advocated by Mubarak. His coalition partner, Likud Leader and Foreign Minister Yitzhak Shamir, would probably go along with him because Shamir is anxious to avoid a clash that could jeopardize his chance of taking over as Prime Minister in October as scheduled. Some Likud Cabinet members oppose this solution, which they regard as giving in to Egyptian pressure...
...their peace treaty with Egypt. But they retained Taba, and in fact built a resort hotel on it. Peres has been ready to agree to an Egyptian demand for international arbitration as a means of warming up the "cold peace" with Cairo. He has been held back by the Likud bloc, his Labor Party's right-wing partners in the ruling coalition...
Last week the Prime Minister won over the Likud ministers by implicitly threatening to resign and thus bring down the government. His secret weapon: the Likud's knowledge that it must not cause too much trouble between now and October, when Peres is due to exchange jobs with Foreign Minister Yitzhak Shamir, the Likud leader. Later in the week Peres scored a victory of another kind: the establishment of diplomatic relations with Spain for the first time. CANADA Markets on the Mind...
...fashionably rumpled Adler, 62, remains one of Sharon's closest friends and most trusted advisers. They met almost 30 years ago, when Adler worked on a campaign for Sharon's Shlomzion party, which later merged with Likud. Adler's politics are centrist--"I'm a 2.6," he says--but he works with Sharon out of admiration for his friend. Every two weeks, Adler spends a weekend morning at Sharon's ranch, chatting and eating with the family. The two men also speak by phone several times a week, often about soccer, not politics...
...note to Adler that hangs framed on his office wall: "Reuven, my good friend, I couldn't have done it without you." Adler isn't advising Sharon on his disengagement plan, at least not officially. (The Prime Minister's office is handling the p.r.) But when Sharon faces Likud leadership primaries and a general election by next year, Adler expects to be part of the campaign. "The message will be different," Adler says, "because Arafat doesn't exist anymore." In other words, Adler may have to reinvent Sharon all over again. --By Matt Rees