[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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