'A Deep Friendship'.(Brief Article)(Interview)(Excerpt)

In the midst of a crisis sparked by an outbreak of terrorism inside Israel, Prime Minister Ariel Sharon took time to talk with NEWSWEEK's Lally Weymouth about the tense situation and his hopes that negotiations can be resumed with the Palestinians--even if not with Yasir Arafat himself. Excerpts:

WEYMOUTH: What happened during your meeting with President Bush last week?

SHARON: I must praise the president. I had a very good meeting and an important one with him. I expressed my admiration for his leadership in conducting the war against world terror. I was impressed by his detailed knowledge of what is happening in Afghanistan... I felt the deep friendship between the president and Israel, and it was very touching. I started with how I see the future. I laid out my plan of how to reach an agreement that will lead to peace.

Would that plan include two states?

At the end of the process. But not now. Then I turned to the current situation and said what steps had to be taken in order to start to reach this solution.

What are these steps?

The position of the government and myself is that Israel will not negotiate a political solution under fire. My approach goes through two phases. One is an armistice agreement that will provide a situation of nonbelligerency. Then the next step will be a permanent agreement. I believe in a gradual solution. There are problems to which there are no answers: the question of Jerusalem. I believe Jerusalem is the capital of the Jewish people and the capital of the state of Israel, united and undivided forever. Of course, the Palestinians don't accept that. The other issue is the right of return of the Palestinian refugees.