ARABS-ISRAEL - June 24 - Bush Outlines His Vision To Settle Conflict.

In his long-awaited speech outlining a path towards peace in the Middle East, US Pres. Bush says at the White House: "For too long, the citizens of the Middle East have lived in the midst of death and fear. The hatred of a few holds the hopes of many hostage. The forces of extremism and terror are attempting to kill progress and peace by killing the innocent. And this casts a dark shadow over an entire region. For the sake of all humanity, things must change in the Middle East. It is untenable for Israeli citizens to live in terror. It is untenable for Palestinians to live in squalor and occupation. And the current situation offers no prospect that life will improve. Israeli citizens will continue to be victimized by terrorists, and so Israel will continue to defend herself. In the situation the Palestinian people will grow more and more miserable. My vision is two states, living side by side in peace and security. There is simply no way to achieve that peace until all parties fight terror. Yet, at this critical moment, if all parties will break with the past and set out on a new path, we can overcome the darkness with the light of hope. Peace requires a new and different Palestinian leadership, so that a Palestinian state can be born. I call on the Palestinian people to elect new leaders, leaders not compromised by terror. I call upon them to build a practicing democracy, based on tolerance and liberty. If the Palestinian people actively pursue these goals, America and the world will actively support their efforts. If the Palestinian people meet these goals, they will be able to reach agreement with Israel and Egypt and Jordan on security and other arrangements for independence. And when the Palestinian people have new leaders, new institutions and new security arrangements with their neighbours, the United States of America will support the creation of a Palestinian state whose borders and certain aspects of its sovereignty will be provisional until resolved as part of a final settlement in the Middle East... The Palestinian people are gifted and capable, and I am confident they can achieve a new birth for their nation. A Palestinian state will never be created by terror - it will be built through reform... Israel also has a large stake in the success of a democratic Palestine. Permanent occupation threatens Israel's identity and democracy. A stable, peaceful Palestinian state is necessary to achieve the security that Israel longs for. So I challenge Israel to take concrete steps to support the emergence of a viable, credible Palestinian state. As we make progress towards security, Israel forces need to withdraw fully to positions they held prior to September 28, 2000. And consistent with the recommendations of the Mitchell Committee, Israeli settlement activity in the occupied territories must stop. The Palestinian economy must be allowed to develop. As violence subsides, freedom of movement should be restored, permitting innocent Palestinians to resume work and normal life. Palestinian legislators and officials, humanitarian and international workers, must be allowed to go about the business of building a better future. And Israel should release frozen Palestinian revenues into honest, accountable hands... Ultimately, Israelis and Palestinians must address the core issues that divide them if there is to be a real peace, resolving all claims and ending the conflict between them. This means that the Israeli occupation that began in 1967 will be ended through a settlement negotiated between the parties, based on UN Resolutions 242 and 338, with Israeli withdrawal to secure and recognise borders. We must also resolve questions concerning Jerusalem, the plight and future of Palestinian refugees, and a final peace between Israel and Lebanon, and Israel and a Syria that supports peace and fights terror. All who are familiar with the history of the Middle East realise that there may be setbacks in this process. Trained and determined killers, as we have seen, want to stop it. Yet the Egyptian and Jordanian peace treaties with Israel remind us that with determined and responsible leadership progress can come quickly. As new Palestinian institutions and new leaders emerge, demonstrating real performance on security and reform, I expect Israel to respond and work toward a final status agreement. With intensive effort by all, this agreement could be reached within three years from now". PM Sharon aide Zalman Shoval called Bush's speech "remarkable", adding: "The president... is backing up the Israeli position that the key to progress on the political track must be an absolute end to terror and violence - not just a reform, not just something cosmetic but a real change in the Palestinian leadership". But PA officials were furious at the US attempt to force a new leadership upon them, with chief PA negotiator Saeb Erekat saying: "I cannot find the president's statements on a new leadership acceptable. It is for the Palestinian people to determine who are their leaders". Commenting on Bush's speech, FM Peres of the Labour Party said: "An important part of the speech was the clarity concerning the vision about the solution of the conflict between us and the Palestinians. What is needed in addition is how to arrive at all those forthcoming steps". Close associates of Peres said he was dismayed and frustrated by Bush's call for the ouster of Arafat, saying he believes Arafat is the only leader acceptable to the Palestinian people. Israeli MP Naomi Chazan of the leftist opposition Meretz Party said in an interview: "We don't find in the president's speech any practical steps that will get Israel and the Palestinians out of the current quagmire. And we are very concerned that the speech gives a green light to a continuation of Mr. Sharon's policies that are not bringing us closer to the end of terrorism and resumption of negotiations".