ANALYSIS: ISRAELI PRIME MINISTER ARIEL SHARON UNDERGOES QUESTIONING REGARDING ALLEGED BRIBERY SCANDAL

Morning Edition: February 5, 2004

BOB EDWARDS, host:

In Jerusalem today, Israel's prime minister, Ariel Sharon, is being questioned by police over his alleged involvement in a bribery scandal. A close Sharon confidant was indicted last month on charges of bribing both the prime minister and his son in exchange for their help in building a resort on a Greek island. If Sharon is indicted, there would be strong pressure on him to resign. Earlier this week, Sharon announced plans to remove most Jewish settlements in Gaza as part of his Unilateral Disengagement policy. NPR's Linda Gradstein is in Jerusalem.

Any connection between Sharon's withdrawal plan and his legal problems?

LINDA GRADSTEIN reporting:

Well, that depends who you ask. Sharon insists there's absolutely no connection. He says he's been talking about the need for disengagement from the Palestinians for several months. He's been talking about making painful concessions to Palestinians for several years. However, many Israeli commentators and analysts say that announcing the plan now is a transparent attempt to take attention away from his legal problems and focus it on something new.

In any case, Sharon's plan that was first reported Monday, that he intends to evacuate 17 Jewish settlements in Gaza, has really stunned Israelis. Israel's deputy prime minister, Ehud Olmert, is in Washington today for a previously unscheduled meeting with Secretary of State Colin Powell to discuss it and, of course, it's been the focus of huge debate in Israel.

EDWARDS: How serious is the bribery scandal?

GRADSTEIN: Well, potentially extremely serious. This is the second time that Sharon is being questioned. Two weeks ago, businessman David Appel was indicted for allegedly bribing Sharon's son Gilead by offering him $3 million in exchange for help with the Greek government. Some of the money apparently went directly to Sharon's farm in the Negev Desert. According to the indictment against Appel, he told Sharon that his son stands to make a lot of money if this deal goes through, and police want to know why Sharon wasn't suspicious about these huge payments. On the other hand, Appel told Israel television that Sharon was not aware of the deal that he made with his son Gilead and, at this point, there is no indictment. It is just questioning and investigation.

EDWARDS: And the public reaction to this?

GRADSTEIN: Sharon's popularity in the last several months has decreased, although analysts say that has as much to do with the ongoing security situation, the lack of any sort of peace process and Israel's economic crisis as it does with the bribery scandal.

Also, the settlements caused a big debate in Israel. Jewish settlers are really in shock. They are launching a campaign against the evacuation. According to one Israeli newspaper, Israeli intelligence has received a large increase in the number of death threats against Sharon from radical right-wing Jewish groups. The settlers are extremely concerned. They say they're going to do everything they can to fight against this; however, the general public does seem to support an Israeli pullback from Gaza. This is not a new idea. It's been discussed before, and polls have consistently shown that close to two-thirds of the public would be willing to pull out of Gaza and dismantle Jewish settlements there. There are about 7,500 Jewish settlers in Gaza as opposed to more than a quarter of a million in the West Bank, so a pullout from the West Bank is seen as far more complicated for Sharon, far more politically dangerous.

EDWARDS: And the reaction among Palestinians?

GRADSTEIN: Well, the Palestinian reaction has been somewhat cautious. Prime Minister Ahmed Qureia did say that it was good news; however, he said this is only one step of many. Other Palestinian officials have said that Sharon tends to talk but not do anything. They point to Israel's promise to evacuate dozens of unauthorized outposts in the West Bank as part of the US-backed roap map to peace that was announced last June. A few outposts have been evacuated. They've then been rebuilt. So Palestinians are very suspicious that Sharon really intends to do anything. They say he hasn't set any kind of a time table and they say that they'll believe it when it happens.

EDWARDS: NPR's Linda Gradstein in Jerusalem.

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