Jerusalem, Israel - The ongoing, deteriorating peace process took a step forward Tuesday after Israeli Prime Minister Ariel Sharon was inadvertently selected to be Yassir Arafat's Secret Santa. Despite Sharon's displeasure at his selection, this could not come at a better time for the Prime Minister who has been under fire for his 18-month house arrest of Arafat.

"We are extremely optimistic over the recent chain of events," said U.S. Secretary of State Colin Powell.

"We hope that the prime minister will select a gift for Arafat that will move the peace process back in the right direction. Right now we believe that it is down to the Playstation 2 with the Grand Theft Auto game and a 16 megabyte memory card, or dropping the threat of expulsion."

Sharon who had not spoken to Arafat since a wave of suicide bombings in March was extremely upset with the selection, and has been rumored to have tried to swap with Shimon Peres.

Peres who had selected Jordan leader King Hussein declined the trade since he reportedly already bought him tickets to the upcoming U2 concert in Tel Aviv.

"Had I not already bought the gift for his majesty I would have considered swapping with Ariel," said Peres.

"I do believe, that it is important for Ariel to go through with his Secret Santa responsibilities for the good of our country and towards bringing an end to terror."

"Anyways, Arafat is near freakin' impossible to shop for. You can't buy him anything without that asshole returning it a week later."

Although Powell is optimistic over the recent events, some view the Secret Santa as potential for disaster. Political Analyst and Historian Dr. Peter Samuels, author of Is That My Secret Santa In Your Pocket, Or Are You Just Happy To See Me, sees the selection backfiring.

"Diplomats and Political Leaders have often turned to the Secret Santa as a conduit towards increasing international relations, however history has shown that it can be just as destructive as beneficial," said Samuels.

"In fact 'Bay of Pigs' was the sad result of Fidel Castro's spiteful choice of pig testicles and lubricant for President Kennedy's Christmas gift. Had the two never been paired up, we might not have been on the brink of World War III."

Despite ongoing tensions, Powell believes that Sharon will choose Arafat's gift tastefully.

"We are all aware of the delicate situation that currently resides in the Middle East. We are all confident that Prime Minister Sharon will choose a gift that is tasteful and appropriate," said Powell.

Sharon, who was out buying 20 pounds of fertilizer, could not be reached for comment.