Israeli Prime Minister Ariel Sharon branded the Palestinian leadership a "corrupt terror regime" Tuesday and said there could be no peace until it undertook sweeping internal reforms. Sharon was addressing Israel's parliament two days after the central committee of his right-wing Likud Party, in a move spearheaded by his political rival Benjamin Netanyahu, voted never to accept the creation of a Palestinian state. Sharon has said before that he is prepared to see a limited, demilitarized Palestinian state created alongside Israel but only at the end of a lengthy and incremental peace process. Without mentioning the statehood issue, Sharon said on Tuesday: "There can be no peace with a corrupt terror regime which is rotten and dictatorial... There has to be a different (Palestinian) Authority."

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