third of the Knesset's 120 seats. He thus needs the Labour party in order to implement the announced withdrawal plan from all 21 settlements in the Gaza Strip, and another four in the West Bank next summer. Palestinian chief negotiator Saeb Erekat welcomed Friday's move to build a new coalition, saying he hoped it would lead to a revival of the peace process and an end to Israeli occupation. Sharon hopes to form his new government within ten days, according to media reports. --SP 1804 Local Time 1504 GMT