Abbas shuns talks with Sharon

The decision, taken amid a row over how many prisoners Israel should free to build confidence between the two sides, was a fresh setback to hopes of forging trust between the two sides and implementing the peace plan rapidly.

The meeting had been due to take place on Wednesday, when Israel is scheduled to release 342 Palestinian prisoners. The Palestinians were disappointed by the figure because Israeli officials had earlier said 540 would go free.

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Israel, for its part, accuses Abbas of holding up the peace plan by failing to crack down on militants. It had already ruled out any further troop withdrawals from West Bank cities after an ambush that wounded a Jewish settler and her three children.

"Abu Mazen canceled the meeting because it will only be ceremonial on the day prisoners are released, and he believes the Israelis are not doing enough to promote the road map," a senior Palestinian official said, using Abbas's nom de guerre.

A source in Sharon's office confirmed the meeting had been canceled because of Palestinian "displeasure" at Israel's prisoner-release roster.

Abbas and Sharon have met several times in recent weeks in talks that have helped build confidence and promote the road map, although deep mistrust remains between the two sides.

The road map does not specifically mention a prisoner release but requires implementation of a previous plan which called for release of "all Palestinians arrested in security sweeps who have no association with terrorist activities."

The Palestinians want an amnesty for all 6,000 of their jailed compatriots, saying this would show Israel is committed to the road map leading to creation of a Palestinian state by 2005 in territories occupied by Israel since 1967.

Sharon says he favors a limited release to boost Abbas, who faces internal opposition to peacemaking.

"I am for taking chances in order to reach an agreement," Sharon told a parliamentary committee on Monday.

AP adds: A US-backed peace plan hit a rough patch after Israel reacted to a Palestinian shooting attack by suspending the transfer of control of West Bank towns to Palestinian security, and both sides reportedly called off a meeting of premiers.

On Monday, Israel listed hundreds of prisoners it planned to release. Palestinians, angry over the list and the numbers, called off a summit between their premier, Mahmoud Abbas, and Israeli Prime Minister Ariel Sharon, Israeli media reported.

The reports said Sharon also called off the meeting, set for Wednesday, because of the ambush. Officials from both sides were not immediately available for comment.

The two last met on July 20, before their separate talks with President Bush in Washington, and said then that they would meet again afterward.

Israeli Defence Minister Shaul Mofaz said Monday that Israel would not hand over control of any more towns until the Palestinians apprehend the gunmen who ambushed an Israeli car near Jerusalem on Sunday, badly wounding a mother and daughter and slightly injuring her two other children.

The attack took place near Bethlehem, the first town that reverted to Palestinian control last month under terms of the U.S.-backed peace plan.