US Secretary of State Mr Colin Powell arrived in the Middle East today to advance a new "road map" plan for peace between Israel and the Palestinians.
Mr Powell, who touched down in Tel Aviv in late afternoon, told reporters on the plane he would press both sides to start implementing security and humanitarian steps prescribed by the plan before agreeing further details.
The road map envisages a Palestinian state by 2005 in the West Bank and Gaza Strip, lands Israel took in a 1967 war.
Palestinian leaders have endorsed the plan but Israel's right-wing government has raised objections on security grounds.
President Bush called last night for the creation a US-Middle East free trade area within 10 years and said the ambitious venture would help end the Arab-Israeli conflict and curb terrorism.
Vowing to seize the "historic opportunity" afforded by Saddam Hussein's ouster, he said the plan would reward reform-minded Arab nations, and called on Israel to take "tangible steps now" to ease Palestinian suffering.
"We have reached a moment of tremendous promise, and the United States will seize the moment for the sake of peace," he said in a speech at the University of South Carolina.
"So I propose the establishment of a US-Middle East free trade area within a decade, to bring the Middle East into an expanding circle of opportunity, to provide hope for the people who live in that region," said Mr Bush.
Only hours later, Mr Powell left for the region for talks with Israel and the Palestinians on the roadmap, which calls for strong measures to be taken by both sides and aims for the creation of a Palestinian state committed to living in peace with Israel. Mr Powell "carries with him my personal commitment," Mr Bush said.
"America will work without tiring to achieve two states, Israel and Palestine, living side by side in security and prosperity and in peace." Mr Bush, who did not mention the roadmap's 2005 target date for a Palestinian state, said "the hope of peace is renewed" now that Saddam is out of power and thanks to the efforts of leaders like Egyptian President Hosni Mubarak and Saudi Crown Prince Abdullah.
But he said all parties in the region "have duties." "If the Palestinian people take concrete steps to crack down on terror, continue on a path of peace, reform and democracy, they and all the world will see the flag of Palestine raised over a free and independent nation."
Israel "must take tangible steps" to ease Palestinian suffering and reward progress towards peace by ending settlements in Palestinian lands, said Mr Bush.