Heat half the oil in a frying-pan. Add the shallots, garlic and green pepper and fry until they are soft. Add the mushrooms, tomatoes, ham and olives and cook for 20 minutes, stirring occasionally, until the mixture has thickened.

Coat the escalopes in the seasoned flour, shaking off any excess.

Heat the remaining oil in a large, deep casserole. Add the escalopes and cook for 3 to 4 minutes on each side, or until they are cooked through and tender. Using tongs, transfer the veal to a plate.

Pour the sherry and water into the casserole and bring to the boil. Stir in the tomato mixture and return the escalopes to the casserole, basting them with the mixture. Reduce the heat to low, cover the casserole and simmer for 5 minutes.

Transfer the mixture to a warmed serving dish and serve at once.