'Arafat Has Not Consistently Opposed Or Confronted Terrorists'

During the course of one week, the situation in the Middle East hasdeteriorated dramatically. Last Wednesday, my Special Envoy, Anthony Zinni,reported to me that we were on the verge of a cease-fire agreement that wouldhave spared Palestinian and Israeli lives.

That hope fell away when a terrorist attacked a group of innocent people in aNetanya hotel, killing many men and women in what is a mounting toll of terror.

In the days since, the world has watched with growing concern the horror ofbombings and burials and the stark picture of tanks in the street. Across theworld, people are grieving for Israelis and Palestinians who have lost theirlives.

When an 18-year-old Palestinian girl is induced to blow herself up, and inthe process kills a 17-year-old Israeli girl, the future, itself, is dying --the future of the Palestinian people and the future of the Israeli people. Wemourn the dead, and we mourn the damage done to the hope of peace, the hope ofIsrael's and the Israelis' desire for a Jewish state at peace with itsneighbors; the hope of the Palestinian people to build their own independentstate.

Terror must be stopped. No nation can negotiate with terrorists. For there isno way to make peace with those whose only goal is death.

This could be a hopeful moment in the Middle East. The proposal of CrownPrince Abdullah of Saudi Arabia, supported by the Arab League, has put a numberof countries in the Arab world closer than ever to recognizing Israel's right toexist. The United States is on record supporting the legitimate aspirations ofthe Palestinian people for a Palestinian state.

Israel has recognized the goal of a Palestinian state. The outlines of a justsettlement are clear: two states, Israel and Palestine, living side by side, inpeace and security.

This can be a time for hope. But it calls for leadership, not for terror.Since September the 11th, I've delivered this message: everyone must choose;you're either with the civilized world, or you're with the terrorists. All inthe Middle East also must choose and must move decisively in word and deedagainst terrorist acts.

The Chairman of the Palestinian Authority has not consistently opposed orconfronted terrorists. At Oslo and elsewhere, Chairman Arafat renounced terroras an instrument of his cause, and he agreed to control it. He's not done so.

The situation in which he finds himself today is largely of his own making.He's missed his opportunities, and thereby betrayed the hopes of the people he'ssupposed to lead. Given his failure, the Israeli government feels it must strikeat terrorist networks that are killing its citizens.

Yet, Israel must understand that its response to these recent attacks is onlya temporary measure. All parties have their own responsibilities. And allparties owe it to their own people to act.

We all know today's situation runs the risk of aggravating long-termbitterness and undermining relationships that are critical to any hope of peace.I call on the Palestinian people, the Palestinian Authority and our friends inthe Arab world to join us in delivering a clear message to terrorists: blowingyourself up does not help the Palestinian cause. To the contrary, suicidebombing missions could well blow up the best and only hope for a Palestinianstate.

All states must keep their promise, made in a vote in the United Nations toactively oppose terror in all its forms. No nation can pick and choose itsterrorist friends. I call on the Palestinian Authority and all governments inthe region to do everything in their power to stop terrorist activities, todisrupt terrorist financing, and to stop inciting violence by glorifying terrorin state-owned media, or telling suicide bombers they are martyrs. They're notmartyrs. They're murderers. And they undermine the cause of the Palestinianpeople.

Those governments, like Iraq, that reward parents for the sacrifice of theirchildren are guilty of soliciting murder of the worst kind. All who care aboutthe Palestinian people should join in condemning and acting against groups likeAl-Aqsa, Hezbollah, Hamas, Islamic Jihad, and all groups which opposed the peaceprocess and seek the destruction of Israel.

The recent Arab League support of Crown Prince Abdullah's initiative forpeace is promising, is hopeful, because it acknowledges Israel's right to exist.And it raises the hope of sustained, constructive Arab involvement in the searchfor peace. This builds on a tradition of visionary leadership, begun byPresident Sadat and King Hussein, and carried forward by President Mubarak andKing Abdullah.

Now, other Arab states must rise to this occasion and accept Israel as anation and as a neighbor. Peace with Israel is the only avenue to prosperity andsuccess for a new Palestinian state. The Palestinian people deserve peace and anopportunity to better their lives. They need their closest neighbor, Israel, tobe an economic partner, not a mortal enemy. They deserve a government thatrespects human rights and a government that focuses on their needs -- educationand health care -- rather than feeding their resentments.

It is not enough for Arab nations to defend the Palestinian cause. They musttruly help the Palestinian people by seeking peace and fighting terror andpromoting development.

Israel faces hard choices of its own. Its government has supported thecreation of a Palestinian state that is not a haven for terrorism. Yet, Israelalso must recognize that such a state needs to be politically and economicallyviable.

Consistent with the Mitchell plan, Israeli settlement activity in occupiedterritories must stop. And the occupation must end through withdrawal to secureand recognize boundaries consistent with United Nations Resolutions 242 and 338.Ultimately, this approach should be the basis of agreements between Israel andSyria and Israel and Lebanon.

Israel should also show a respect, a respect for and concern about thedignity of the Palestinian people who are and will be their neighbors. It iscrucial to distinguish between the terrorists and ordinary Palestinians seekingto provide for their own families.

The Israeli government should be compassionate at checkpoints and bordercrossings, sparing innocent Palestinians daily humiliation. Israel should takeimmediate action to ease closures and allow peaceful people to go back to work.

Israel is facing a terrible and serious challenge. For seven days, it hasacted to root out terrorist nests. America recognizes Israel's right to defenditself from terror. Yet, to lay the foundations of future peace, I ask Israel tohalt incursions into Palestinian-controlled areas and begin the withdrawal fromthose cities it has recently occupied.

I speak as a committed friend of Israel. I speak out of a concern for itslong-term security, a security that will come with a genuine peace. As Israelsteps back, responsible Palestinian leaders and Israel's Arab neighbors muststep forward and show the world that they are truly on the side of peace. Thechoice and the burden will be theirs.

The world expects an immediate cease-fire, immediate resumption of securitycooperation with Israel against terrorism. An immediate order to crack down onterrorist networks. I expect better leadership, and I expect results.

These are the elements of peace in the Middle East. And now, we must buildthe road to those goals. Decades of bitter experience teach a clear lesson:progress is impossible when nations emphasize their grievances and ignore theiropportunities. Storms of violence cannot go on. Enough is enough.

And to those who would try to use the current crisis as an opportunity towiden the conflict, stay out. Iran's arms shipments and support for terror fuelthe fire of conflict in the Middle East. And it must stop. Syria has spoken outagainst al Qaeda. We expect it to act against Hamas and Hezbollah, as well. It'stime for Iran to focus on meeting its own people's aspirations for freedom andfor Syria to decide which side of the war against terror it is on.

The world finds itself at a critical moment. This is a conflict that canwiden or an opportunity we can seize. And so I've decided to send Secretary ofState Powell to the region next week to seek broad international support for thevision I've outlined today. As a step in this process, he will work to implementUnited Nations Resolution 1402, an immediate and meaningful cease-fire, an endto terror and violence and incitement; withdrawal of Israeli troops fromPalestinian cities, including Ramallah; implementation of the already agreedupon Tenet and Mitchell plans, which will lead to a political settlement.

I have no illusions. We have no illusions about the difficulty of the issuesthat lie ahead. Yet, our nation's resolve is strong. America is committed toending this conflict and beginning an era of peace.

We know this is possible, because in our lifetimes we have seen an end toconflicts that no one thought could end. We've seen fierce enemies let go oflong histories of strife and anger. America itself counts former adversaries astrusted friends: Germany and Japan and now Russia.

Conflict is not inevitable. Distrust need not be permanent. Peace is possiblewhen we break free of old patterns and habits of hatred. The violence and griefthat troubled the Holy Land have been among the great tragedies of our time. TheMiddle East has often been left behind in the political and economic advancementof the world. That is the history of the region. But it need not and must not beits fate.

The Middle East could write a new story of trade and development anddemocracy. And we stand ready to help. Yet, this progress can only come in anatmosphere of peace. And the United States will work for all the children ofAbraham to know the benefits of peace.

Thank you very much.