President George Bush said this evening that Israeli and Palestinian leaders have agreed to negotiations leading to a peace accord and establishment of an independent Palestinian state "by the end of 2008", Mr Bush said.
George W Bush flanked by Israeli Prime Minister Ehud Olmert ahead of today's talks
He was speaking after the opening of a US-led conference in Annapolis, Maryland. The first session of a steering committee to guide the talks between the sides will be held December 12th.
In a joint statement, Israel and the Palestinian representatives expressed a "determination to bring an end to bloodshed" and "usher in a new area of peace," Mr Bush said.
The talks will "lay the foundations for the establishment of a new nation, a democratic Palestinian state that will live side-by-side with Israel in peace and security," the president said, reading from the joint statement.
Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas addressed the session after Mr Bush and will conduct a three-way meeting with the US president later this evening.
Leaders from about 50 countries and organizations are attending the summit, including Arab-nation stakeholders such as Jordan, Lebanon, Syria, Egypt and Saudi Arabia.
In his own address, Mr Bush told the conference at the US Naval Academy that their future is staked to reaching an agreement.
While achieving that goal won't be easy, it must be done because "a battle is under way for the future of the Middle East, and we must not cede victory to the extremists," Mr Bush said.
"Our purpose here in Annapolis is not to conclude an agreement," the President said. "Rather, it is to launch negotiations between the Israelis and Palestinians."
Both sides must "show patience and flexibility" to reach their goals. Mr Bush is opening his biggest Middle East peace initiative. He gave his "personal commitment" to the goal of two democratic states, Israel and Palestine, living side by side in peace and security.
"The United States strongly feels that these efforts will yield the peace that we want," Mr Bush said.
"The time is right because Palestinians and Israelis have leaders who are determined to achieve peace."
An independent state "will provide Palestinians with the chance to lead lives of freedom, purpose and dignity,'' and offer Israel "something they have been seeking for generations: to live in peace with their neighbors," Mr Bush said.
Agencies