The coming year would bring "a historic opportunity" for the Israelis to reach a breakthrough in the Middle East conflict with the Palestinians following the death of Yasser Arafat, Israeli Prime Minister Ariel Sharon said Thursdayevening.

"Important strategic opportunities lay ahead in 2005 for the state of Israel...we will have a historic opportunity to reach a long-awaited agreement with the Palestinians," Sharon told an academic conference in the coastal city of Herzliya.

"We must not miss this opportunity to reach an agreement," Sharon stressed.

"To achieve big breakthroughs, one needs to make concessions. Israel's biggest concession is the disengagement plan and the withdrawal from Gaza," he said, adding that "it is clear to everyone that we will not be in Gaza after a final status agreement."

The prime minister called his plan as one that would unite the nation, saying the kick-off of the plan is a "huge step in the right direction."

He said the plan has improved Israel's international image and Israel's pullout from Gaza would ease demographic pressure on the country.

After four years of fighting, Sharon insisted that the Jewish presence in Gaza has become untenable, with about 8,000 Jews in 21 settlements living along with 1.3 million Palestinians.

Sharon said pulling out of Gaza would help Israel solidify its hold on the more important West Bank where most of the 240,000 Jewish settlers live.

Referring to the Palestinian presidential elections slated for Jan. 9, Sharon said Israel "will assist the Palestinian efforts to carry out elections in every possible way."

The prime minister said Arafat's death on Nov. 11 offered a new chance for the emergence of new Palestinian leaders ready to reach a deal with Israel.

Addressing the Palestinians directly, the prime minister said "we have no desire to rule over you or to run your affairs."

Israel said previously that it would pull its troops out of Palestinian population centers for 72 hours before, during and after the vote.

Sharon, however, said the Palestinians must "eliminate terrorism" as a condition for progress toward a peace deal.

He said Israel would be prepared to coordinate its pullout from Gaza with a new Palestinian leadership that would take responsibility for fighting terrorism.

The Palestinians should have their own state because to continueIsraeli control over Palestinian areas would mean "one people maintaining control of another people."

Shortly after Sharon's keynote speech, Palestinian chief negotiator Saeb Erekat slammed Sharon's vision for a final status solution between the two sides, saying Sharon didn't bring anythingnew.

"Sharon is not bringing any solution, he is dictating his solution that he agreed upon with US President George W. Bush and imposing it on the Palestinians," Erekat said.

"Sharon wants to annex settlements in the West Bank to Israel," he added.

"Sharon says he wants to live in peace with the Palestinians, and at the same time he is confiscating our territories. Sharon says no to complete withdrawal, no to refugees, no to Jerusalem andin the end he says he wants to have a Palestinian partner who accepts these visions," said Erekat.

Echoing Erekat's words, the Islamic Resistance Movement (Hamas) also condemned Sharon's statement, saying it reflected the real image of a fake peace Israel wanted and it was based on the principle of neglecting the rights of the Palestinian people.

Hamas spokesman Abu Zuhri also blasted the United States for supporting Sharon who said his vision had been agreed and coordinated with the United States before Sharon's speech.

"Sharon's statement reflects a US conspiracy with the Zionist enemy, which is tantamount to launching a propaganda war against the Palestinian people," said Abu Zuhri.

Zuhri said Hamas' reaction to the statement "would only be continuing Palestinian armed resistance."

Source: Xinhua