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of a security wall, visible in background,
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city of Tulkarm.

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only real political and security option,
because, they say, it is now clear that
there is no peace partner on the
Palestinian side.
Based on that premise, former Prime
Minister Ehud Barak says Israel should
adopt a three-pronged policy: fight ter-
ror, withdraw behind a completed
fence and come out with a peace plan
of its own to show that the fence is not
a final border and that Israel is open to
negotiations whenever the Palestinians
are ready.
Some analysts go further, contending
that with the building of the fence a
process has been set in motion that
will lead inevitably to separation
between Israelis and Palestinians in two
adjacent states. Dan Schueftan, author
of the book Disengagement. Israel and
the Palestinian Entity, is widely regard-
ed as the intellectual father of the sepa-
ration fence. He is convinced Sharon
will eventually realize that unilateral
separation is the only option.
"Just as I knew Sharon would go for
division of the land of Israel before he
said the words Palestinian state'
because of the inner logic, I know
today he will go for unilateral disen-
gagement, because it's clear there won't
be any agreement with the Palestinians
and we don't want to take responsibili-
ty for the Palestinians' everyday life

and welfare. I am worried about the
pace, but not about the direction," he

said.
On Tuesday, the Bush administration
announced that it would cut U.S. loan
guarantees to Israel because of expan-
sion of Jewish settlements in the West
Bank. It said further cuts might be
made because of construction of the
security fence.
The same day, Israel sold $1.6 billion
in U.S.-backed bonds on the Wall
Street financial markets. fl