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Olmert Declares Intent to Step Down

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Rice, who has made nine trips to the region this year in an effort to promote an agreement, expects to return next month.

The administration has been persistently upbeat about the possibility of reaching an agreement this year, despite minimal progress and repeated setbacks. Saeb Erekat, an aide to Qurei who participated in the Washington talks, said they would "continue to try," but "we will not allow time to be the sword [at] our necks."

Olmert's successor as party leader does not face an easy road to the top office. If he or she succeeds in forming a coalition, Israel could have a new government by the end of October. Otherwise, the country would hold new elections, probably early next year, and Olmert would remain in office until then as head of a caretaker government.

Gerald Steinberg, a professor of political science at Bar-Ilan University, said the most likely scenario was that Israel would go to new elections. That would pit Livni against former prime minister Binyamin Netanyahu, leader of the opposition Likud Party. Polls show Netanyahu with a 10-point lead over Livni if the elections were held today.

"She will have a hard time convincing voters that she has the necessary security experience," Steinberg said. "We're talking about issues like a possible war with Iran or Hamas in Gaza. These are difficult situations."

Thursday's announcement could also bode ill for Kadima. The party was founded by former prime minister Ariel Sharon in November 2005 to advocate for a Palestinian state in the West Bank. Olmert was thrust into the leadership of Kadima in January 2006 after Sharon suffered a massive stroke.

"Kadima is a very fragile structure that Sharon put together, and it could well shatter after the primary," Steinberg said.

Meanwhile, Palestinian medical workers said Israeli troops wounded nine Palestinians in the West Bank town of Ramallah during the funeral of a 10-year-old boy killed Tuesday by Israeli police during a protest. They said Israeli troops fired rubber bullets after mourners threw stones at them. A 17-year-old Palestinian was hit in the head, and doctors said he is brain-dead.

Staff writer Karen DeYoung in Washington contributed to this report.


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