DATE=3/12/02

TYPE=CORRESPONDENT REPORT

TITLE=ANNAN/MIDDLE EAST (L-O)

NUMBER=2-287467

BYLINE=JAMES DONAHOWER

DATELINE=NEW YORK

CONTENT=

INTRO: Using his strongest language to date, U-N Secretary General Kofi Annan has condemned both Israel and the Palestinians for their roles in escalating violence. James Donahower is at the United Nations.

TEXT: Stating that he felt he must speak directly to the people and the leadership of both sides, Mr. Annan denounced, in no uncertain terms, the actions of Palestinian militants and the Israeli authority.

While Mr. Annan reiterated his belief that Palestinians have the "inalienable" right to a sovereign state, he called for an immediate end to acts of terror and suicide bombings. He called the murder of innocent civilians "morally repugnant".

He spoke in equally clear terms to Israel.

/// ANNAN ACT ///

You must end the illegal occupation. More urgently, you must stop the bombing of civilian areas, the assassinations, the unnecessary use of lethal force, the demolitions, and the daily humiliations of ordinary Palestinians. Such actions gravely erode Israel's standing in the international community, and further fan the flames of hatred, despair, and extremism among the Palestinians.

/// END ACT ///

Mr. Annan urged both sides to "lead your peoples away from disaster." He said security and a political settlement are indivisible. (SIGNED)

NEB/NYC/JAD/RAE