Sharon presents three-point Mideast peace plan

Sharon addresses the AIPAC conference via satellite Tuesday

JERUSALEM (CNN) -- Israeli Prime Minister Ariel Sharon outlined a three-point plan Tuesday that he said would lead to Israelis and Palestinians living side by side in peace.

"I want Israel to live in peace," Sharon told the American Israel Public Affairs Committee (AIPAC), which is meeting in Washington. He spoke to its members via satellite. The group helps strengthen the friendship between Israel and the United States and lobbies for pro-Israeli causes.

Sharon, who recently announced the completion of the first phase of "Operation Defensive Shield" in Palestinian towns and camps, proposed:

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Referring to the recent Israeli battles with the Palestinians, Sharon said, "Once free of terror, we can move forward to implement the Tenet cease-fire agreement."

The Tenet plan, proposed by U.S. CIA director George Tenet, urges Israeli and Palestinian security organizations to reaffirm commitments to security agreements.

"We want to live in peace with our Palestinian neighbors," Sharon added. "But they must first accept our right to live in our ancestral homeland in peace and security. I'm optimistic about the future."

Reacting to Sharon's speech, chief Palestinian negotiator Saeb Erakat focused on the Israeli incursions in the West Bank, saying, "Sharon did not withdraw from anyplace."

"He has made our towns and villages big prisons with buffer zones," Erakat said. "Sharon destroyed the Palestinian Authority."

Under Operation Defensive Shield, the Israelis were able to dismantle much of the infrastructure of suspected Palestinian suicide bombers, Sharon said, "thereby saving the lives of many Israelis."

He said that has put his country and the Palestinians back on the road to moving forward and ending their hostilities.

Sharon also voiced concern about anti-Semitism outside Israel, with reports of attacks on synagogues in Europe, Africa and North America, and he said his goal is to attract at least 1 million Jews to move to Israel.

Erakat said that, in his opinion, the Israelis' next step will be the storming of Palestinian President Yasser Arafat's compound and the killing of Arafat, who has been confined to his headquarters in Ramallah. Israeli tanks and troops still surround the compound.

"He (Sharon) is destroying our way of life," Erakat said. He accused the Israelis of destroying Palestinian water systems, schools and other services.