Less than a week after being appointed to the Israeli cabinet, ultra-nationalist Avigdor Lieberman called for Israel to become "as much as possible" an all-Jewish country without an Arab minority.

The Scotsman reports that Mr. Lieberman's remarks deeply embarrassed the government of Prime Minister Ehud Olmert, who had assured the Israeli public that "Lieberman had accepted coalition guidelines pledging equality between Arab and Jewish citizens and the combating of racism." Mr. Olmert said that the remarks did not reflect his government's policies.

However, Lieberman, a deputy premier who is also minister for strategic affairs, ignored the prime minister's clarification and restated his idea during an interview yesterday with Army Radio. "Anywhere in the world where there are two peoples and two religions there is conflict," Mr Lieberman said. "What we have seen in Cyprus is that since they have that model, there is no terror. There is security."

In his book, My Truth, Lieberman terms the Arab minority of Israel, which makes up 20 per cent of the population, the gravest threat facing the country.

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The Jerusalem Post reports that Olmert had brought Lieberman's ultra-nationalist Israel Beiteinu Party into his governing coalition last week, much to the consternation of many who felt Lieberman's hawkish views would undermine any attempts at finding a peaceful solution to the Israeli-Palestinian conflict. Last week during one of his first cabinet meetings, Lieberman said that as far as Palestinians were concerned, Israel should adopt tactics similar to those used by Russia in Chechnya.

Though they ignored Lieberman's comments last week, members of Israel's Labor Party, which is also a part of the governing coalition, issued strong rebukes of his latest remarks.

"His statements are unacceptable and completely offensive. I hope the prime minister conducts a thorough inquiry into this matter," said Tourism Minister Isaac Herzog (Labor).

Education Minister Yuli Tamir (Labor) denounced Lieberman for taking an "anti-Arab" stance since he became minister.

"A democratic state in general, and a Jewish state in particular, must allow room for minorities within it, and must make every effort to make them equal partners," said Tamir.

But The Independent reports that the strongest statements condemning Lieberman came from Israeli novelist Daniel Grossman, who addressed a crowd of 100,000 Israelis, gathered to mark the 11th anniversary of Prime Minister Yitzhak Rabin's assassination by an ultra-nationalist. Mr. Grossman's son, a tank commander, was killed during the recent Israeli-Hizbullah war. The Independent reports that Grossman called the appointment of Lieberman a "crude kick" to Israeli democracy and said it was like appointing "a serial pyromaniac to manage the fire service."

Grossman also condemned the Israel government as a whole, saying that a failure of moral leadership was "was undermining the vision of a Jewish state." Grossman said the military and political leadership of Israel was "hollow."

Grossman railed against the apathy with which Israelis were reconciled to the failure of the peace process. While saying it was impossible to talk with the Hamas government, he urged Mr Olmert to appeal to the Palestinian people over the heads of their elected leaders.

"Appeal to the moderates among them, those who are opposed like you and me to Hamas and its path," Mr Grossman said."Speak to their deep wound, recognise their suffering ... Just for once, look at them not only through the sights of a gun and not beyond the closed barrier. You will see there a people that are tormented no less than we are, an occupied and oppressed and hopeless people. Look at the overwhelming majority of that miserable people, whose fate is linked to ours, whether we want it or not."

Grossman's speech was widely covered in the Israeli media, and was broadcast live on Israeli TV. Some commentators said they had not heard a speech like it "in many years." But The Jerusalem Post reports that the response among Israeli politicians was "startling" and varied depending on their political affiliation.

Faced with Grossman's critique of the government and a crowd waving dozens of giant signs reading, "Olmert and Peretz have abandoned his [Rabin's] path" and "Meretz won't sit with Lieberman," many Labor and Kadima politicians sat silent and grim-faced.

YNetNews reports that Grossman last month won a Koret International Jewish Book Award for his novel "Her Body Knows."

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Feedback appreciated. E-mail Tom Regan.