Sharon said he would press on with his unilateral "disengagement plan" to pull all Jewish settlers out of the Gaza Strip and only after that consider returning to the US-led "road map" to the creation of a Palestinian state.
But Sharon was facing a new revolt against his Gaza Strip pullout plan yesterday after Israeli Foreign Minister Silvan Shalom said he would lead a campaign for it to be put to a referendum.
Speaking in an interview on Tuesday night, Shalom insisted that he did not want to wreck the premier's flagship policy but said a referendum would help end divisions within the country.
A source close to the prime minister said that anyone who supported the idea of a referendum was "trying to sabotage the separation plan and bring about the downfall of the prime minister."
At the summit, Sharon also sought to dispel a widespread suspicion of his intent among ordinary Palestinians.
"To our Palestinian neighbors, I assure you that we have a genuine intention to respect your right to live independently and in dignity," he said.
He added: "You too must prove that you have the strength and the courage to compromise, abandon unrealistic dreams, subdue the forces which oppose peace, and live in peace and mutual respect side by side with us."
After the declarations, the Egyptian and Jordanian leaders said they would be returning their ambassadors to Tel Aviv. They were withdrawn at the beginning of the intifada.
British Foreign Secretary Jack Straw said there was "guarded optimism" over the declarations.
"There have been too many false dawns over the last 60 years," he said in London. "There have been more tears than smiles but I sense there is a commitment from Abbas and Sharon, a new determination to make a reality of the goal of two states living side by side."
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