The surprise announcement came after Sharon was rebuffed by the far-right nationalist union — Yisrael Beiteinu faction — to support his 20-month old government in restoring parliamentary majority after the six-member Labour Party pulled out of the government in a row over funding of Jewish settlements.

Sharon met President Moshe Katsav before making the announcement for the elections, expected to be held on February 4, in line with the law stipulating a 90-day run-up to the elections. The Knesset has been dissolved more than two years ahead of the expiry of its four-year term.

Addressing a hurriedly called press conference, Sharon described his decision as “the least bad option” and said he was forced to act because he could not agree to numerous conditions set by potential political allies.

Saeb Erakat, a member of the Palestinian Authority Cabinet said, “We hope that the Israeli people will choose and elect a government that is capable of making peace.”

“The Israeli people deserve a leadership that can deliver peace and not a government like the current one of settlements, reoccupation, bloodshed and chaos. We hope that the Israeli public will elect a government that leads towards historic reconciliation between Palestinians and Israelis,” he said.

Maintaining that elections at a period of security and economic concerns and a possible US-led attack on Iraq was “not what the state needs,” Sharon blamed his decision on the “irresponsible” resignation of the Labour Party and requirements by other possible allies.

“All sorts of requirements were posed which I could not agree to for the sake of the country,” he said.

“I will not throw away the good of the country for narrow-based party political considerations,” a visibly angry Sharon declared.

After the departure of Labour ministers from the government, Sharon was left with the support of only 55 lawmakers in the 120-member Parliament.

Both Sharon’s Likud and Labour parties are scheduled to hold primary elections for the leadership before the general elections.

Sharon faces a likely challenge for the Likud leadership from former Prime Minister Binyamin Netanyahu.

Under the Israeli law, elections will have to be held on the last Tuesday before the 90 days’ period after the decision to dissolve Parliament is published in the official Knesset registry, which is expected in the next few days. February 4, which is a Tuesday, is widely mentioned as the election date.

Rejecting the far-right faction’s demands, Sharon said he would not “change the government’s basic lines, nor impair the profound strategic agreements and understandings with the USA.”

He also maintained he would get the national Budget passed as soon as possible “without modifying the level of deficit.”

The dramatic move by Sharon intensifies Israel’s political instability at a time when it fights the Palestinian uprising. The country has seen five Prime Ministers in the past seven years.

Asked how he felt about possibility of the Israelis going to the polls wearing gas masks as fears loom large over Iraq’s President Saddam Hussein unleashing a conventional and non-conventional offensive in the event of a US-led attack, he said, “I do not think it is responsible to talk about that sort of thing.”

Sharon said his transition government would deal with Palestinian uprising without any compromise.

Meanwhile, Israel’s former Prime Minister Benjamin Netanyahu, announced today that he accepted Prime Minister Sharon’s offer to serve as Foreign Minister until early elections were held in February.

He said he accepted Sharon’s offer because Israel was in a crisis.

“We know that we are in the toughest security situation, we know we are on eve of war in Iraq. I told the Prime Minister right now that I am willing to take on the position of the Foreign Minister,” Netanyahu told a news conference. PTI

Polling booths opened at 6 am (4.30 pm IST) in New York, Connecticut, Virginia, Illinois, Indiana, Kentucky, Maine, Rhode Island and Vermont.

The rest of the states and the capital district of Washington will stagger their openings according to time zone and local electoral rules, with Hawaii, the westernmost state, being the last to close its poll.

Americans are voting to elect 435 representatives, 34 Senators and 36 state governors.

The battle for control of both the Senate and House of Representatives will be an agonisingly close one, with poll late yesterday still indicating many of the races — especially for Senate seats — too close to call.

The US Congress is currently split between Democrats and Republicans in the Senate (100 seats), and has a Republican majority in the House (435 seats).

The Republicans and Democrats in the Senate each have 49 seats and there are two independents, with 34 seats contested in today’s poll.

The entire House of Representatives is up for grabs. Up to now, the Republicans have edged out the Democrats 223-208, with one seat held by an independent and three seats vacant after a death, resignation and an expulsion. Thirtysix of the 50 state Governor posts will also go on the line.

In addition, several states will hold referendums on ballot initiatives, including six states who will vote on the still-smouldering issue of whether to ease laws on marijuana use. AFP

The sources told the Japanese agency, on condition of anonymity that the Defence Ministry had narrowed down its choices to the Patriot Air Defence System, the Nike Hercules missiles and the Hawk missile system.

The deal would be in addition to the military purchase that Pakistan had been negotiating with the USA under the aegis of the Pakistan-US Defence Consultative Group, which met in Islamabad in September.

Washington has lifted a 1990 ban on the supply of military equipment to Pakistan after General Musharraf backed the USA in its war against terrorism following the September 11, 2001, terrorist attacks in the USA.

The sources said preliminary talks had been held with the USA, which reportedly had expressed its willingness to supply an anti-missile system to Pakistan to discourage further missile proliferation in the region.

The defence sources said Pakistan was moved to acquire a US anti-ballistic missile system following “reliable reports” that India was exploring the feasibility of acquiring an anti-ballistic missile system from Russia.

Alleging that the Indian officials had blamed Pakistan for the lack of economic progress made by the SAARC, a foreign office statement issued here last night said by refusing to deal with Pakistan, India attempted to scuttle the SAARC process.

“India’s reluctance to deal with Pakistan under the SAARC framework and their suggestion during the SAPTA meeting to handle economic cooperation issues bilaterally or under other forums is a manifestation of their desire to scuttle the SAARC process which, in any case, remained suspended for close to three years because of Indian intransigence”, it said.

“The Indian Government’s obduracy in SAARC meetings and its whimsical attitude towards the association also betray its policy to impose India’s political and economic hegemony in South Asia” it said.

Referring to the comments by the Indian Ministry of External Affairs spokesperson suggesting that the recently concluded SAPTA meeting in Kathmandu failed to make any headway because of Pakistan’s attitude, it said such statements should be seen in the backdrop of the conflicting claims being made by the Indians regarding the dates of the forthcoming summit in Islamabad and India’s participation in it.

It said Pakistan “constructively” participated in the three back-to-back SAARC meetings dealing with economic issues, held in Kathmandu from October 26 to November 1.

“It is strange for India to accuse Pakistan of impeding the progress when the only stalemates during the three meetings were caused by India,” the statement said.

“In the CEC meeting, India developed major differences with the least developed countries (LDCs) on the scale and extent of special and differential treatment to be extended to the ldcs under the SAPTA. The deadlock was resolved through the efforts of the leader of the Pakistan delegation. This was appreciated by all the member states, including India”, it said.

In the SAPTA meeting, it said despite India’s effort to bring “extraneous bilateral elements”, like Pakistan according Most Favoured Nation status, Pakistan acted “responsibly”.

“Pakistan made a substantive offer of tariff concessions on a number of tariff lines identified by India. This offer was motivated by a genuine desire to undertake meaningful economic cooperation under the SAARC and to ensure a successful conclusion of the SAPTA meeting”, it said.

“India, however, refused to present its list of concessions to Pakistan as per the agreed agenda”, it said.

The statement said that Pakistan remained committed to strengthening the SAARC and to deepen cooperation amongst all member states, including in the field of economic cooperation. PTI

ZDF, in a preview of a programme to be aired later today, cited August Hanning, President of the German intelligence agency, the BND, as saying that Germany faced a “higher danger” from a possible Al-Qaida attack.

“Osama bin Laden is not only alive, but he is also operating,” Mr Hanning said in the ZDF programme, Frontal 21.

The Al-Qaida leader and his deputies were believed to be moving about in the remote and difficult terrain of the border region between Afghanistan and Pakistan.

“He has many helpers. He is operating in regions which are very difficult to reach,” Mr Hanning said about Bin Laden. “He also changes the places where he stays, making it very difficult to determine his situation and position.”

It was now believed that Bin Laden was organising guerrilla war in Afghanistan and that there are indications that there will possibly be attacks on western ISAF forces in the country.

The BND boss said the terror danger to Germany had taken on a new dimension after the early October interview in Arab television by Bin Laden’s top deputy, Ayman al-Zawahiri, threatening to “increase the dosage” for Germany and France because of their support for the USA in the war on terrorism.

While Western intelligence security did not believe that Al-Qaida was capable of “using nuclear weapons”, it could not be excluded that they have developed so-called “dirty bombs”, Mr Hanning said, referring to devices triggering high radioactive contamination. DPA