Olmert Suffers Political Setback

JERUSALEM — Prime Minister Olmert suffered a major setback yesterday when a party withdrew from his coalition in protest at his support for peace talks with the Palestinian Arabs. The decision by Avigdor Lieberman, the leader of the Yisrael Beitenu Party — which has 11 members of Parliaments — to leave the government reduced Mr. Olmert’s bloc to 67. Mr. Lieberman, who supports the idea of removing all Israeli Arabs from Israel, said his party was leaving the government because of Mr. Olmert’s willingness to give Palestinian Arabs land occupied by Israel in 1967. Some observers believe that Mr. Lieberman is trying to position himself as a potential partner for any future government led by Likud Party,.