    [Public Papers of the Presidents of the United States: George W. Bush (2007, Book II)]
    [July 16, 2007]
    [Pages 971-975]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on the Middle East
    July 16, 2007

        Good afternoon. In recent weeks, debate in our country has rightly
    focused on the situation in Iraq, yet Iraq is not the only pivotal
    matter in the Middle East. More than 5 years ago, I became the first
    American President to call for the creation of a Palestinian state. In
    the Rose Garden, I said that Palestinians should not have to live in
    poverty and occupation. I said that the Israelis should not have to live
    in terror and violence. And I laid out a new vision for the future: two
    democratic states, Israel and Palestine, living side by side in peace
    and security.
        Since then, many changes have come, some hopeful, some dispiriting.
    Israel has taken difficult actions, including withdrawal from Gaza and
    parts of the West Bank. Palestinians have held free elections and chosen
    a President committed to peace. Arab States have put forward a plan that
    recognizes Israel's place in the Middle East. And all these parties,
    along with most of the international community, now share the goal of a
    peaceful, democratic Palestinian state, a level of consensus never
    before seen on this crucial issue.
        The past 5 years have also brought developments far too familiar in
    the recent history of the region. Confronted with the prospect of peace,
    extremists have responded with acts of aggression and terror. In Gaza,
    Hamas radicals betrayed the Palestinian people with a lawless and
    violent takeover. By its actions, Hamas has demonstrated beyond all
    doubt that it is devoted to extremism and murder than to serving the
    Palestinian people.
        This is a moment of clarity for all Palestinians, and now comes a
    moment of choice. The alternatives before the Palestinian people are
    stark. There is the vision of Hamas, which the world saw in Gaza, with
    murderers in black masks and summary executions and men thrown to their
    death from rooftops. By following this path, the Palestinian people
    would guarantee chaos and suffering and the endless perpetuation of
    grievance. They would surrender their future to Hamas's foreign sponsors
    in Syria and Iran. And they would crush the possibility of any--of a
    Palestinian state.
        And there's another option, and that's a hopeful option. It is the
    vision of President Abbas and
    Prime Minister Fayyad; it's the vision of their
    Government; it's the vision of a peaceful state called Palestine as a
    homeland for the Palestinian people. To realize this vision, these
    leaders are striving to build the institutions of a modern democracy.
    They're working to strengthen the Palestinian security services, so they
    can confront the terrorists and protect the innocent. They're acting to
    set up competent ministries that deliver services without corruption.
    They're taking steps to improve the

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    economy and unleash the natural enterprise of the Palestinian people.
    And they're ensuring that Palestinian society operates under the rule of
    law. By following this path, Palestinians can reclaim their dignity and
    their future and establish a state of their own.
        Only the Palestinians can decide which of these courses to pursue.
    Yet all responsible nations have a duty to help clarify the way forward.
    By supporting the reforms of President Abbas and Prime Minister Fayyad,
    we can help them show the world what a Palestinian state would look like
    and act like. We can help them prove to the world, the region, and
    Israel that a Palestinian state would be a partner, not a danger. We can
    help them make clear to all Palestinians that rejecting violence is the
    surest path to security and a better life. And we can help them
    demonstrate to the extremists once and for all that terror will have no
    place in a Palestinian state.
        So in consultation with our partners in the Quartet--the European
    Union, Russia, and the United Nations--the United States is taking a
    series of steps to strengthen the forces of moderation and peace among
    the Palestinian people.
        First, we are strengthening our financial commitment. Immediately
    after President Abbas expelled
    Hamas from the Palestinian Government, the United States lifted
    financial restrictions on the Palestinian Authority that we had imposed.
    This year, we will provide the Palestinians with more than $190 million
    in American assistance, including funds for humanitarian relief in Gaza.
    To build on this support, I recently authorized the Overseas Private
    Investment Corporation to join in a program that will help generate $228
    million in lending to Palestinian businesses. Today I announce our
    intention to make a direct contribution of $80 million to help
    Palestinians reform their security services, a vital effort they're
    undertaking with the guidance of American General Keith Dayton. We will work with Congress and partners around the
    world to provide additional resources once a plan to build Palestinian
    institutions is in place. With all of this assistance, we are showing
    the Palestinian people that a commitment to peace leads to the generous
    support of the United States.
        Second, we're strengthening our political and diplomatic commitment.
    Again today President Abbas and
    Prime Minister Olmert sat down together to
    discuss priorities and resolve issues. Secretary Rice and I have strongly supported these meetings, and
    she has worked with both parties to sketch out a political horizon for a
    Palestinian state. Now we will intensify these efforts, with the goal of
    increasing the confidence of all parties in a two-state solution. And we
    will continue to deliver a firm message to Hamas: You must stop Gaza
    from being a safe haven for attacks against Israel. You must accept the
    legitimate Palestinian Government, permit humanitarian aid in Gaza, and
    dismantle the militias. And you must reject violence, and recognize
    Israel's right to exist, and commit to all previous agreements between
    the parties. As I said in the Rose Garden 5 years ago, a Palestinian
    state will never be created by terror.
        Third, we're strengthening our commitment to helping build the
    institutions of a Palestinian state. Last month, former Prime Minister--
    British Prime Minister Tony Blair agreed to take
    on a new role as Quartet representative. In this post, he will
    coordinate international efforts to help the Palestinians establish the
    institutions of a strong and lasting free society, including effective
    governing structures, a sound financial system, and the rule of law. He
    will encourage young Palestinians to participate in the political
    process. And America will strongly support his work to help Palestinian
    leaders answer their people's desire to live in peace.
        All the steps I've outlined are designed to lay the foundation for a
    successful Palestinian state in the West Bank and Gaza:

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    a nation with functioning political institutions and capable security
    forces and leaders who reject terror and violence. With the proper
    foundation, we can soon begin serious negotiations toward the creation
    of a Palestinian state.
        These negotiations must resolve difficult questions and uphold clear
    principles. They must ensure that Israel is secure. They must guarantee
    that a Palestinian state is viable and contiguous. And they must lead to
    a territorial settlement, with mutually agreed borders reflecting
    previous lines and current realities and mutually agreed adjustments.
    America is prepared to lead discussions to address these issues, but
    they must be resolved by Palestinians and Israelis themselves. Resolving
    these issues would help show Palestinians a clear way forward. And
    ultimately, it could lead to a final peace in the Middle East, a
    permanent end to the conflict, and an agreement on all issues, including
    refugees and Jerusalem.
        To make this prospect a reality, the Palestinian people must decide
    that they want a future of decency and hope, not a future of terror and
    death. They must match their words denouncing terror with action to
    combat terror. The Palestinian Government must arrest terrorists,
    dismantle their infrastructure, and confiscate illegal weapons, as the
    roadmap requires. They must work to stop attacks on Israel and to free
    the Israeli soldier held hostage by extremists.
    And they must enforce the law without corruption, so they can earn the
    trust of their people and of the world. Taking these steps will enable
    the Palestinians to have a state of their own. And there's only one way
    to end the conflict, and nothing less is acceptable.
        Israel has a clear path. Prime Minister Olmert must continue to release Palestinian tax revenues to the
    Government of Prime Minister Fayyad. Prime
    Minister Olmert has also made clear that Israel's future lies in
    developing areas like the Negev and Galilee, not in continuing
    occupation of the West Bank. This is a reality that Prime Minister
    Sharon recognized as well. So unauthorized
    outposts should be removed and settlement expansion ended. At the same
    time, Israelis should find other practical ways to reduce their
    footprint without reducing their security so they can help President
    Abbas improve economic and humanitarian
    conditions. They should be confident that the United States will never
    abandon its commitment to the security of Israel as a Jewish state and
    homeland for the Jewish people.
        The international community must rise to the moment and provide
    decisive support to responsible Palestinian leaders working for peace.
    One forum to deliver that support is the Ad Hoc Liaison Committee, a
    group chaired by Norway that includes the United States and Japan, the
    World Bank and the International Monetary Fund, and Arab States such as
    Saudi Arabia, Egypt, and Jordan. Today I call for a session of this
    committee to gather soon, so that the world can back its words in real
    support for the new Palestinian Government.
        The world can do more to build the conditions for peace. So I will
    call together an international meeting this fall of representatives from
    nations that support a two-state solution, reject violence, recognize
    Israel's right to exist, and commit to all previous agreements between
    the parties. The key participants in this meeting will be the Israelis,
    the Palestinians, and their neighbors in the region. Secretary
    Rice will chair the meeting. She and her
    counterparts will review the progress that has been made toward building
    Palestinian institutions. They will look for innovative and effective
    ways to support further reform. And they will provide diplomatic support
    for the parties in their bilateral discussions and negotiations, so that
    we can move forward on a successful path to a Palestinian state.
        Arab States have a pivotal role to play as well. They should show
    strong support

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    for President Abbas's Government and reject
    the violent extremism of Hamas. They should use their resources to
    provide much-needed assistance to the Palestinian people. Nations like
    Jordan and Egypt, which are natural gateways for Palestinian exports,
    should open up trade and--to create opportunities on both sides of the
    border.
        Arab nations should also take an active part in promoting peace
    negotiations. Relaunching the Arab League initiative was a welcome first
    step. Now Arab nations should build on this initiative by ending the
    fiction that Israel does not exist, stopping the incitement of hatred in
    their official media, and sending cabinet-level visitors to Israel. With
    all these steps, today's Arab leaders can show themselves to be the
    equals of peacemakers like Anwar Sadat and King Hussein of Jordan.
        The conflict in Gaza and the West Bank today is a struggle between
    extremists and moderates. And these are not the only places where the
    forces of radicalism and violence threaten freedom and peace. The
    struggle between extremists and moderates is also playing out in
    Lebanon, where Hizballah and Syria and Iran are trying to destabilize
    the popularly elected Government. The struggle is playing out in
    Afghanistan, where the Taliban and Al Qaida are trying to roll back
    democratic gains. And the struggle is playing out in Iraq, where Al
    Qaida, insurgents, and militia are trying to defy the will of nearly 12
    million Iraqis who voted for a free future.
        Ceding any of these struggles to extremists would have deadly
    consequences for the region and the world. So in Gaza and the West Bank
    and beyond, the international community must stand with the brave men
    and women who are working for peace.
        Recent days have brought a chapter of upheaval and uncertainty in
    the Middle East. But the story does not have to end that way. After the
    wave of killing by Hamas last month, a 16-year-old girl in Gaza City
    told a reporter, ``The gunmen want to destroy the culture of our fathers
    and grandfathers. We will not allow them to do it.'' She went on, ``I'm
    saying it's enough killing. Enough.''
        That young woman speaks for millions--in Gaza, the West Bank, in
    Israel, in Arab nations, and in every nation. And now the world must
    answer her call. We must show that in the face of extremism and
    violence, we stand on the side of tolerance and decency. In the face of
    chaos and murder, we stand on the side of law and justice. And in the
    face of terror and cynicism and anger, we stand on the side of peace in
    the Holy Land.
        Thank you.

    Note: The President spoke at 1:09 p.m. in the Cross Hall at the White
    House. In his remarks, he referred to President Mahmoud Abbas and Prime
    Minister Salam Fayyad of the Palestinian Authority; Lt. Gen. Keith W.
    Dayton, USA, U.S. Security Coordinator to Israel and the Palestinian
    Authority; Prime Minister Ehud Olmert and former Prime Minister Ariel
    Sharon of Israel; and Gilad Shalit, an Israeli soldier captured and held
    captive by militants in Gaza since June 25, 2006.

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