    [Public Papers of the Presidents of the United States: George W. Bush (2002, Book I)]
    [June 24, 2002]
    [Pages 1059-1062]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on the Middle East
    June 24, 2002

        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. 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 neighbors, the United States of
    America will support the creation of a Palestinian state whose

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    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 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, 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. And the
    United States, along with others in the international community, will
    help the Palestinians organize and monitor fair, multiparty local
    elections by the end of the year, with national elections to follow.
        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, 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.
        The United States and members of the international community stand
    ready to work with Palestinian leaders to establish finance--establish,
    finance, and monitor a truly independent judiciary.
        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 is 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. 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.

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        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 organizations.
        Leaders who want to be included in the peace process must show by
    their deeds an 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 normalization 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 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.
        I've asked Secretary Powell to work
    intensively with Middle Eastern and international leaders to realize the
    vision of a Palestinian state, focusing them on a comprehensive plan to
    support Palestinian reform and institution-building.
        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 U.N. Resolutions 242 and 338,
    with Israeli withdrawal to secure and recognized 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 realize
    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 3 years from now.
    And I and my country will actively lead toward that goal.
        I can understand the deep anger and anguish of the Israeli people.
    You've lived too long with fear and funerals, having to avoid markets
    and public transportation, and forced to put armed guards in
    kindergarten classrooms. The Palestinian Authority has rejected your
    offered hand and trafficked with terrorists. You have a right to a
    normal life. You have a right to security,

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    and I deeply believe that you need a reformed, responsible Palestinian
    partner to achieve that security.
        I can understand the deep anger and despair of the Palestinian
    people. For decades you've been treated as pawns in the Middle East
    conflict. Your interests have been held hostage to a comprehensive peace
    agreement that never seems to come, as your lives get worse year by
    year. You deserve democracy and the rule of law. You deserve an open
    society and a thriving economy. You deserve a life of hope for your
    children. An end to occupation and a peaceful, democratic Palestinian
    state may seem distant, but America and our partners throughout the
    world stand ready to help--help you make them possible as soon as
    possible.
        If liberty can blossom in the rocky soil of the West Bank and Gaza,
    it will inspire millions of men and women around the globe who are
    equally weary of poverty and oppression, equally entitled to the
    benefits of democratic government.
        I have a hope for the people of Muslim countries. Your commitments
    to morality and learning and tolerance led to great historical
    achievements, and those values are alive in the Islamic world today. You
    have a rich culture, and you share the aspirations of men and women in
    every culture. Prosperity and freedom and dignity are not just American
    hopes or Western hopes. They are universal, human hopes. And even in the
    violence and turmoil of the Middle East, America believes those hopes
    have the power to transform lives and nations.
        This moment is both an opportunity and a test for all parties in the
    Middle East, an opportunity to lay the foundations for future peace, a
    test to show who is serious about peace and who is not. The choice here
    is stark and simple. The Bible says, ``I have set before you life and
    death . . . therefore choose life.'' The time has arrived for everyone
    in this conflict to choose peace and hope and life.
        Thank you very much.

    Note: The President spoke at 3:47 p.m. in the Rose Garden at the White
    House.