ISRAEL

Guardian: Sharon rejects US pressure on settlements
Israel will not surrender sovereignty of Jewish towns to Palestinian state, PM warns before Washington talks on Middle East peace deal

Ariel Sharon has rebuffed American warnings that the continued expansion of settlements is a major obstacle to a Middle East peace deal by saying that Israel will not surrender sovereignty of Jewish towns in the occupied territories.
The prime minister further aggravated the issue by saying that the controversial "security fence" being constructed around the main Palestinian cities and towns on the West Bank will follow a route that in effect annexes some of the largest settlements into Israel.