Bush moves to calm Middle East fears

US President George Bush sought to reassure sceptical Arabs today he is committed to securing a deal on Palestinian statehood…

US President George Bush sought to reassure sceptical Arabs today he is committed to securing a deal on Palestinian statehood before he leaves office, despite his outspoken support for Israel.

Wrapping up his Middle East tour in the Egyptian resort of Sharm el-Sheikh, Bush was looking to ease Palestinian dismay over his visit to Israel, where he lavished the Jewish state with praise, hailing it as a "homeland for the chosen people".

Bush used a speech to a mostly Arab audience at the World Economic Forum in Sharm el-Sheikh to insist he "firmly believes" a Middle East peace agreement can be reached this year - a deadline widely viewed as unrealistic.

Highly unpopular in the Muslim world because of the Iraq war, Bush alternately prodded and encouraged Arab allies on everything from oil to political reform, and urged them to isolate US foes Syria and Iran for "supporting terrorism."

"We must stand with the Palestinian people, who have suffered for decades and earned the right to a homeland of their own," Bush said.

Adjusting his approach from the one taken on his visit to Israel last week to celebrate its 60th anniversary, Bush pressed Palestinians to "fight terror" and called on Israel to make "tough sacrifices for peace and ease restrictions on Palestinians."

He was alluding to the hardship Palestinians face from Israeli roadblocks and barriers in the occupied West Bank, measures they call collective punishment but which Israel says are to defend it against militant attacks.

Bush's more sympathetic words to the Palestinians, appeared aimed at countering Arab doubts, reinforced by his Israel visit, about his ability to act as an even-handed peacebroker.

His call for Palestinian statehood drew the strongest applause but his reception was mostly muted, a far cry from the hero's welcome he received in Israel.

After his speech to the conference, which was attended by Arab leaders like Egyptian President Hosni Mubarak and Jordan's King Abdullah, Bush left for Washington.

Despite little sign of significant advances toward peace on Bush's second trip to the region this year, his national security adviser, Stephen Hadley, insisted Israeli and Palestinian negotiators had been making "tangible progress," and he left the door open to a third presidential visit.

Bush also urged Arab leaders to stand by Lebanese Prime Minister Fouad Siniora against Hezbollah and to shun Iran over its nuclear programme.

"Every peaceful nation in the region has an interest in opposing Iran's nuclear weapons ambitions," Bush said, drawing only a sprinkling of applause. Iran says it wants nuclear technology only for peaceful purposes.

He called on Arab governments to free all "prisoners of conscience" and open up political debate, saying Washington was "deeply concerned" about repression of democracy activists and the closure of newspapers and civil society organisations.

"Too often in the Middle East, politics has consisted of one leader in power and the opposition in jail," Bush said.
In talks with Mubarak yesterday, Bush reiterated US calls for the release of jailed opposition politician Ayman Nour, White House officials said.

Nour, who unsuccessfully challenged Mubarak in Egypt's first multi-candidate presidential elections in 2005, is serving a five-year jail term for fraud. He says authorities fabricated the case to block him from politics.

Reflecting US public concerns about record oil prices during a presidential election year, Bush also warned Arab oil producers their supplies are limited and they must diversify their economies. His comments follow a visit to Saudi Arabia where he won a modest increase in oil output. Reuters