Israel's colourful election campaign promised to turn nasty yesterday after a burglary at a US firm advising Labour party chief Mr Ehud Barak raised comparisons with the 1972 Watergate scandal that brought down US president Mr Richard Nixon.
In a pre-dawn raid on Tuesday on the offices of political consultant Mr Stanley Greenberg, thieves stole information on Mr Barak's campaign against Prime Minister Mr Benjamin Netanyahu and his right-wing Likud party in the May 17th elections, Labour party officials said.
"The burglars stole computer disks containing information on Mr Barak's bank accounts and assets," Mr Tal Zylberstein, a member of Labour's campaign team, said.
Israeli newspapers said the stolen information also contained Mr Barak's campaign strategy, including details of his planned appearances during the four months leading to the election.
A spokesman for Mr Netanyahu quickly denounced the Washington burglary as "unacceptable".
However, suspicion over the break-in has fallen on Mr Barak's right-wing opponents, given his position as the leading contender to topple Mr Netanyanu.
Mr Zylberstein told Israeli radio that "according to information from Washington, a Jewish group trying to hurt Barak's campaign" was behind the theft. He did not elaborate.
The break-in occurred at Greenberg Quinlan Research, a firm specialising in political polling and strategy whose clients have included President Clinton. The company's star consultant, Mr James Carville, who is credited with masterminding Mr Clinton's 1992 election victory and helping British Labour leader Mr Tony Blair win the premiership in 1997, was in Israel three weeks ago working with Mr Barak's campaign team.
US police said the burglars removed a roof vent and then broke through the ceiling of Mr Greenberg's office in an apparently professional operation which drew the immediate attention of the FBI.
Mr Netanyahu was forced into early elections last month when his right-wing parliamentary coalition collapsed and opinion polls show Mr Barak is the most serious threat to his re-election.
The election campaign turned sour from the very beginning last week with Mr Barak and Mr Netanyahu accusing one another of effectively allying with Palestinian factions to lead Israel to ruin.
Mr Barak, Mr Netanyahu and a centrist candidate for prime minister, former military chief Mr Amnon Lipkin-Shahak, all received death threats in the first days of the campaign.
Israeli Foreign Minister Gen Ariel Sharon was quoted yesterday as saying there would be a Palestinian state.
"Autonomy will lead to a Palestinian state," the hardline former general told the newspaper Le Monde in an interview which was published as he arrived in Paris. He warned, however, that such a state could only emerge as a result of negotiations with Israel.
Gen Sharon's comment about the possible emergence of a Palestinian state was in answer to the question: "Yes or no, can you envisage the principle of a Palestinian state?" His affirmative reply appeared to be the most explicit he has been on the subject so far.