Bush came closer to Israel's view than any predecessor
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The US president has defended Israel's plan to leave Gaza and parts of the West Bank, which he backed last week.
"[Israeli Prime Minister] Ariel Sharon
said 'We are pulling out'," George W Bush said in Washington.
"The whole world should have said, 'Thank you, Ariel; now we have a chance to begin the construction of a peaceful Palestinian state'," he said.
Mr Bush sparked anger in the Arab world by saying Israel could keep some land it seized in the 1967 war.
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It's hard to be responsible for promoting freedom and peace when you're used to something else
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Decrying the refusal of the most governments to follow his lead, the US president said: "Yes, there was kind of silence, wasn't there? Because the responsibility is hard."
Mr Bush also criticised the Palestinian leadership, saying it had "failed the people, year
after year after year".
"Now is the time... to build a Palestinian state that's committed to the principles of individual rights, and rule of law, and fairness, and justice," he said.
The Palestinians are in no mood to thank Sharon or Bush
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The Bush-Sharon declaration inflamed the Arab world as it signalled the apparent abandonment by the White House of some long-held principles in the peace process - in particular that land cannot be acquired by war.
This week, King Abdullah II abruptly postponed a scheduled meeting with Mr Bush at the White House in a sign of Jordanian concern about the new US stance.
Egyptian President Hosni Mubarak warned that the Arabs hate the US more than ever following its invasion of Iraq and Israel's assassination of two leaders of the militant Palestinian group Hamas.
Mr Bush's latest remarks came in a conference of newspaper editors in Washington.
Apparently referring to Arab leaders, Mr Bush said: "It's hard to be responsible for promoting freedom and peace when you're used to something else.
"If you don't have the aspirations of the people firmly embedded in your soul, it's hard to take a gamble for peace."