During an interview with Israel's Channel 1 television, Sharon said he is carrying out talks with Palestinians who are interested in negotiating peace, but he refused to say with whom he negotiates.

"There are contacts. The contacts will continue," Sharon said. "Slowly the number of people who are prepared to talk peace is growing, and I maintain contacts with them. Whoever is prepared to talk peace, I am prepared to have contact with him," headded.

During the interview, Sharon also said after the Jan. 28 elections he, if elected the next prime minister, will create a national unity government.

"My Likud party will win the elections, I will form the government and I will create a national unity government," Sharon pledged.

He said there is no Labor party leader who will refuse to join such a government, including Amram Mitzna, the newly-elected Labor party chairman.

In late October, the Labor party bolted the national unity government amid disputes over the budget, resulting in early elections.

Mitzna has said he will only join a new unity government if Sharon agrees to his demands for withdrawal from the Gaza Strip anda security fence to separate Israel from the West Bank Palestinians.

(Xinhua News Agency December 18, 2002)