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Monday, 24 June, 2002, 21:21 GMT 22:21 UK
Bush's Mid-East speech
Extracts of US President George W Bush's long-awaited policy statement on how to end the Middle East conflict.
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.
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 victimised by terrorists, and so Israel will continue to defend herself, and the situation of 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.
In the work ahead, we all have responsibilities. The Palestinian people are gifted and capable and I'm 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. And reform must be more than cosmetic change or a veiled attempt to preserve the status quo.
True reform will require entirely new political and economic institutions based on democracy, market economics and action against terrorism.
Today the elected Palestinian legislature has no authority and power is concentrated in the hands of an unaccountable few.
A Palestinian state can only serve its citizens with a new constitution which separates the powers of government.
The Palestinian parliament should have the full authority of a legislative body. Local officials and government ministers need authority of their own and the independence to govern effectively.
The United States, along with the European Union and Arab states, will work with Palestinian leaders to create a new constitutional framework and a working democracy for the Palestinian people.
Today, the Palestinian people live in economic stagnation, made worse by official corruption. A Palestinian state will require a vibrant economy, where honest enterprise is encouraged by honest government.
The United States, the international donor community and the World Bank stand ready to work with Palestinians on a major project of economic reform and development.
The United States, the EU, the World Bank and the International Monetary Fund are willing to oversee reforms in Palestinian finances, encouraging transparency and independent auditing.
And the United States, along with our partners in the developed world, will increase our humanitarian assistance to relieve Palestinian suffering.
Today, the Palestinian people lack effective courts of law and have no means to defend and vindicate their rights. A Palestinian state will require a system of reliable justice to punish those who prey on the innocent.
Today, Palestinian authorities are encouraging, not opposing terrorism.
This is unacceptable. And the United States will not support the establishment of a Palestinian state until its leaders engage in a sustained fight against the terrorists and dismantle their infrastructure.
This will require an externally supervised effort to rebuild and reform the Palestinian security services. The security system must have clear lines of authority and accountability, and a unified chain of command.
America's pursuing this reform along with key regional states. The world is prepared to help, yet ultimately these steps toward statehood depend on the Palestinian people and their leaders.
If they energetically take the path of reform, the rewards can come quickly.
End to violence
If Palestinians embrace democracy, confront corruption and firmly reject terror, they can count on American support for the creation of a provisional state of Palestine.
With a dedicated effort, this state could rise rapidly, as it comes to terms with Israel, Egypt and Jordan on practical issues such as security.
The final borders, the capital and other aspects of this state's sovereignty will be negotiated between the parties as part of a final settlement.
Arab states have offered their help in this process, and their help is needed.
I've said in the past that nations are either with us or against us in the war on terror. To be counted on the side of peace, nations must act.
Every leader actually committed to peace will end incitement to violence in official media and publicly denounce homicide bombings.
Every nation actually committed to peace will stop the flow of money, equipment and recruits to terrorist groups seeking the destruction of Israel, including Hamas, Islamic Jihad and Hezbollah.
Every nation actually committed to peace must block the shipment of Iranian supplies to these groups and oppose regimes that promote terror, like Iraq.
And Syria must choose the right side in the war on terror by closing terrorist camps and expelling terrorist organisations.
Leaders who want to be included in the peace process must show this by their deeds and undivided support for peace.
And as we move toward a peaceful solution, Arab states will be expected to build closer ties of diplomacy and commerce with Israel, leading to full normalisation of relations between Israel and the entire Arab world.
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 toward security, Israeli forces need to withdraw fully to positions they held prior to 28 September 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 recognised 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.
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