ARAB-US RELATIONS - July 16 - Bush In New Push For Mideast Peace.

President George W. Bush launches a fresh push to revive the stalled Middle East peace process, offering US leadership of efforts to find a two-state solution to the conflict. Bush said Palestinians faced a moment of choice between peace and violence and urged the international community to help them choose the better path. "Palestinian people must decide that they want a future of decency and hope - not a future of terror and death", he said. Bush pledged $190m of economic assistance to the Palestinian territories and $80m to help train Palestinian security forces. The aid was aimed at strengthening Mahmoud Abbas, the embattled Palestinian president, whose Fatah party is engaged in a violent power struggle with Hamas, the Islamic militant group. Hamas seized control of Gaza in June, while Fatah remains in charge of the West Bank. "We are showing the Palestinian people that a commitment to peace leads to the generous support of the US", said Bush. The US initiative came as Tony Blair, former British PM, prepares to start his role as envoy for the Middle East Quartet. The Quartet - comprised of the US, the EU, Russia and the UN - is scheduled to meet in Lisbon on July 16 for the first time since Blair's appointment and the Hamas takeover of Gaza. Condoleezza Rice, US secretary of state, and Ban Ki-moon, UN secretary-general, are expected to attend. Bush promised "strong support" for Blair in his new role. He acknowledged that progress towards peace had been mixed at best since he became the first US president to declare support for a Palestinian state five years ago. But he said there was "a level of consensus never before seen" within the international community about the need for a two-state solution. Bush said the US would host an international meeting this autumn bringing together nations that shared his vision of a Palestinian state at peace with Israel. July 16 intervention by Bush came after Abbas consolidated his control of the West Bank on July 14 by installing an interim government dominated by moderates. Bush urged the PA to prove its ability to be a "partner not a danger" for Israel by arresting terrorists and confiscating illegal weapons. Any final settlement must guarantee a secure Israel and a viable and contiguous Palestinian state, he said. "America is prepared to lead discussions to address these issues". Bush linked the strife within the Palestinian territories to broader turmoil in the Middle East, saying it was part of the same struggle against extremists faced by Lebanon, Iraq and Afghanistan. "Conceding any of these struggles to extremists would have deadly consequences for the world", he said.