Jerusalem, May 27: Israeli Prime Minister Ariel Sharon went into damage-control mode today after stunning the country and his own party by using the term "occupation" to refer to Israel's presence in the Palestinian territories. "People did not understand me," a parliamentary source quoted Sharon as saying during a meeting of the committee on defence and foreign affairs.

"Attorney-general Elyakim Rubinstein called me yesterday and confirmed that the official word used for the territories is 'disputed.'"

Sharon had caused a stir among his own ranks on Monday when he criticised the negative impact on Israel of the military occupation of the Palestinian territories, and already appeared to be regretting his comments.

"I think that the idea of keeping 3.5 million Palestinians under occupation is the worst thing for Israel, for the Palestinians and also for the Israeli economy," he told his fellow Likud MPs on Monday.

"You may not like the word, but what's happening is occupation," he insisted.

Israel's "control over the Palestinians cannot continue without end. Do you want to stay forever in Jenin, Nablus, Ramallah and Bethlehem? That is not right," he said.

Sharon was responding to a barrage of sharp criticism from Right-wing Likud members after the cabinet's grudging approval Sunday of the Mideast roadmap for peace, which envisions the creation of a Palestinian state by end of 2005.

The comments, the most moderate statements ever known to have been pronounced by the hawkish premier, had threatened to further alienate the extreme-right parties in his government coalition and the hardliners in his own party.

Bureau Report