Israel-Hezbollah prisoner swap deal in jeopardy

The Israeli cabinet narrowly agreed Sunday to a swap with the Lebanese-based movement but ruled out freeing Samir Kantar who was jailed in 1980 for murdering an Israeli family.

Hezbollah leader Hassan Nasrallah, who has already warned that "any deal that excludes any Lebanese prisoner will be refused," made clear Monday that his movement was in no mood for compromise.

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Critics of the sawp have contrasted Sharon's willingness to set free 400 Palestinian prisoners in one fell swoop in a deal with the hardline Hezbollah, with his reluctance to agree to pleas by the moderate former Palestinian prime minister Mahmud Abbas for significant numbers of releases.

Abbas, who was also weakened by a power struggle with Palestinian leader Yasser Arafat, triggered a month of political turmoil by quitting in September.

His successor Ahmed Qorei, who has been heading an emergency administration, was preparing Monday to submit an enlarged government for parliamentary approval.

Qorei announced Sunday that negotiations on a new government had concluded and that the line-up would be submitted to parliament for a confidence vote Wednesday.

A major hurdle to the much delayed formation of the new Palestinian cabinet was cleared Friday when Qorei accepted Arafat's choice for the key post of interior minister.