THE PRESIDENT: Good morning. I'm speaking to you from the Middle East, where I have been meeting with friends and allies. We're discussing how we can work together to confront the extremists who threaten our future. And I have encouraged them to take advantage of the historic opportunity we have before us to advance peace, freedom, and security in this vital part of the world.

My first stop was Israel and the Palestinian Territories. I had good meetings with Israeli Prime Minister Olmert and Palestinian President Abbas. Both these men are committed to peace in the Holy Land. Both these men have been elected by their people. And both share a vision of two democratic states -- Israel and Palestine -- living side by side in peace and security.

I came away encouraged by my meetings with Israeli and Palestinian leaders. Each side understands that the key to achieving its own goals is helping the other side achieve its goals. For the Israelis, their main goal is ensuring the safety of their people and the security of their nation. For the Palestinians, the goal is a state of their own, where they can enjoy the dignity that comes with sovereignty and self-government. In plain language, the result must be the establishment of a free and democratic homeland for the Palestinian people, just as Israel is a free and democratic homeland for the Jewish people. For this to happen, the Israelis must have secure, recognized, and defensible borders. And the Palestinians must have a state that is viable, contiguous, sovereign, and independent. Achieving this vision will require tough decisions and painful concessions from both sides.

I believe that a peace agreement between Israelis and Palestinians that defines a Palestinian state is possible this year. Prime Minister Olmert made clear to me that he understands a democratic Palestinian state is in the long-term security interests of Israel. President Abbas is committed to achieving this Palestinian state through negotiation. The United States cannot impose an agreement on the Israelis and Palestinians -- that is something they must work out themselves. But with hard work and good will on both sides, they can make it happen. And both men are getting down to the serious work of negotiation to make sure it does happen.

The United States will do all we can to encourage these negotiations and promote reconciliation between Israelis and Palestinians. But the international community has a responsibility to help as well. In particular, the Arab nations of the Gulf have a responsibility both to support President Abbas, Prime Minister Fayyad, and other Palestinian leaders as they work for peace, and to work for a larger reconciliation between Israel and the Arab world. And in my meetings with Arab leaders over the next few days, I will urge them to do their part.

A democratic Palestinian state is in the interests of the Palestinians. It is in the long-term security interests of Israel. And it is in the interests of a world at war with terrorists and extremists trying to impose their brutal vision on the Middle East. By helping the Israeli and Palestinian people lay the foundation for lasting peace, we will help build a more hopeful future for the Holy Land -- and a safer world for the American people.

Thank you for listening.

END

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