President Bush says Palestinian leader Yasser Arafat must do a better job of fighting terrorism if there is to be a chance for resuming Israeli-Palestinian peace efforts. Mr. Bush said "we believe he can, and he must."

The president was speaking before starting White House talks with Jordan's King Abdullah on the Mideast situation and bilateral cooperation. President Bush said Mr. Arafat has to show the world he is willing to join the fight against terror. Mr. Bush said he thought progress was being made until the discovery by Israel last month of a shipload of Iranian arms being sent to the Palestinians. Mr. Bush said the shipment was in total contrast to what Mr. Arafat had assured him about fighting terrorism. Mr. Arafat has denied links to the shipment. The Palestinian Authority has arrested one naval official and issued warrants for two others in the arms smuggling incident.

Mr. Bush deflected a reporter's question about the remark made by Israeli Prime Minister Ariel Sharon, that Mr. Sharon regrets Israel did not eliminate Mr. Arafat 20 years ago when Israeli forces had him besieged in Lebanon.

Instead, President Bush said the best way to peace is to keep focused on what derails peace - and that is terrorism. He said eliminating terrorism will help bring peace.

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