Israeli Prime Minister Ariel Sharon, whose Likud party has rejected the idea of a Palestinian state, said on Wednesday he expected such a state would emerge eventually -- but only after lengthy negotiations.
"At the end it's very possible there will be a Palestinian state," Sharon told Channel Two television in an interview.
He was speaking after Palestinian President Yasser Arafat admitted mistakes and called for sweeping reforms of his administration and new elections, in response to pressure at home and abroad.
Arafat gave few details when he announced his plans to the Palestinian Legislative Council, a day after Sharon ruled out peace talks unless the Palestinian chief cleaned up his "corrupt terror regime."
The United States and the European Union welcomed Arafat's statement but said they now looked for action to push the stalled Middle East peace process forward.
(China Daily May 17, 2002)