Shas Party Chairman Eli Yishai warned Monday morning that his party would leave the government if an agreement is reached with the Palestinians. Days before US President Bush's visit to Israel, Yishai said that "Shas will not be a part of the government that reduces the territory of the state of the Jewish people and fills it with refugees." Yishai repeated a statement made by Likud Chairman Binyamin Netanyahu, saying that "the only way to make the Palestinian leadership relevant is through economic development." He further stated, "Along with the risks of making concessions on Jerusalem, the opening of the floodgates for refugees and a withdrawal to the '67 lines will also constitute a horrible incentive that will pose heaps of security dangers in our city centers." Prime Minister Olmert and Palestinian Authority President Mahmoud Abbas met last week in Jerusalem for talks. Sources involved in the negotiations said that meaningful progress had been achieved on the issue of the eventual borders of a Palestinian state and also on future Israeli security arrangements.