[Weekly Compilation of Presidential Documents Volume 43, Number 29 (Monday, July 23, 2007)]
[Pages 966-969]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.
    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 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

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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--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

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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 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 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

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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 (Abu 
Mazen) 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, Israeli soldier 
captured and held captive by militants in Gaza since June 25, 2006.